http://www.fool.com/investing/gener...eant-pharmaceuticals-shares-jumped-today.aspx
http://www.forbes.com/companies/valeant-pharmaceuticals/
http://www.theglobeandmail.com/glob...igher-revenue-profit-in-2014/article16227923/
http://stocktwits.com/message/19115097
http://www.benzinga.com/analyst-rat...an-stanley-upgrades-valeant-pharmaceuticals-o
And the one you hate the most:
http://www.forbes.com/sites/davidsh...e-anti-art-levinson-means-for-pharmas-future/
A new way of doing business may be the best way to move forward in today's pharmaceutical environment. There are little incentives for a company to bring new drugs to market. Generic drugs are required by most health insurance companies and by all government regulated drug plans-Medicare, Military plans, peehip, etc. I know you are all about the betterment of mankind, but no company can pay the costs of R& D, drug trials, and other to face these mandates to use products that are less expensive. We also must recognize the cost of new and novel drugs is not only in the cost of that particular molecule -all varieties and strengths of the molecule that were tested prior to choosing one to go to market, but also the drugs that were developed & studied yet never came to market.
I applaud your firm desires for companies to put employees before all else, however, as previously mentioned, employees are not loyal and will move to a competitor for a very small rise in financial benefit. Corporations are not family owned and operated, but answer to shareholders. If you were a wise investor you would understand this concept. Not that we should answer only to the almighty dollar, but when looking for employment you should consider your options. You do not belong in corporate America if you want that type of work environment. Many people have chosen not to work in these surroundings. If you worked for any corporation, ou were guilty.
Valeant, who I am not yet too familiar with as I was a B &L employee who has transitioned this month, has over 7,500 employees worldwide. You have declared yourself to be smarter than many of us, but for now, we are working and being productive and tax paying citizens which is more than you are doing for humanity while sitting at home playing on your computer and finding reasons to be angry with a corporation who laid you off.
You have spent days on this post and others complaining about Valeant's business model, challenging anyone and everyone to come up with positives to match your opinions of negatives. I have seen several posts telling you they are happy so far with the attitude, the healthcare plan, the stock matching program, 401K, and even their company cars. Maybe not the (so called) intelligent answers you were trying to extract, but very reasonable answers. Questions have been posed to you which you have conveniently chosen not to answer, or have ridiculed. I would label this behavior as a big bully-hiding behind an anonymous board.
So you are smarter than most employees here, have more intellect than the major investment houses and firms across this country (who are pretty high on Valeant) and definitely smarter than CEOs of Valeant, B & L, and other companies who have merged with and sold out to Valeant. You think pretty highly of yourself for someone who wasn't astute enough to find another job before the acquisition. In fact, you should open your own pharmaceutical house. Someone as outstanding as you should have been making millions not be a grunt worker in product development. A grunt, because if you had been a scientist or a valued employee, you would have identified your lofty position for us-because people with your claims do that kind of thing. They also call people dunces, and children and make fun of people's livelihoods.
The thing that you have overlooked in your ongoing attacks, is that when you bark too much people no longer want to play your game. The posters on this board have turned on you and are declaring you to be a bit "touched", to put it nicely. This is now or company. Ours and over 7,500 other people. Lots of people with a different opinion than yours. Dunces? I say not.
Valeant is here to stay. You are gone.
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Cramer: Sell this ‘beloved Wall Street stock’?
CNBC.com 01/23/14 6:25 PM ET
By: Lee Brodie
All good things must come to an end. Cramer says it's time to ring the register on this stock, if you own it.
And owning Valeant Pharma has been a good thing. Over the past 5 years shares have surged over 1000%.
Nonetheless Cramer thinks it's time to sell. "And stay away from the stock if you don't own it," he added.
The Mad Money host arrived at this conclusion after poring over an article written by CNBC contributor Herb Greenberg for TheStreet.
"When Herb Greenberg throws a red flag, I pay attention. His track record is just too good," Cramer said. And in the case of Valeant, Greenberg is throwing flags here, there and everywhere.
Greenberg's concerns largely stem from the goals and growth strategy set forth by Valeant CEO Michael Peason.
"When Peason took over back in 2008, he said Valeant's high-aspiration goal was to become one of the top 15 pharma companies by the end of 2013," Cramer noted
Peason achieved that goal. However, he did it through a string of rapid fire acquisitions. "They have done sixty deals in the last six years," Cramer noted.
So far that strategy has been very successful.
However, what worries Greenberg is that the company now has a new aspirational target.
"Valeant wants to be among the top five pharma companies by the end of 2016, which would mean more than tripling the company's market cap over the next three years to $150 billion. That is a very ambitious goal, and Herb Greenberg makes it pretty clear that the only way Valeant can even get near there is by doing many more acquisitions, and possibly one big acquisition."
Historically, Greenberg says this is the kind of strategy that almost always ends badly. That is, the deals either dry up or they're not as accretive as they once were or they burden the company with massive debt.
In fact, the acquisition strategy has already generated a lot of debt.
"Herb points out that the company's debt has ballooned from $4.9 billion two years ago up to $17 billion as of last quarter." Even more debt on the balance sheet can't be good.
To make this strategy all the more concerning, Greenberg reminds that interest rates are rising. "Higher rates make it much more expensive for Valeant to borrow the money it needs to do these deals," Cramer said.
And Greenberg notes that M&A in the sector is accelerating broadly. That likely makes future acquisitions more expensive. Again, a problem.
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On top of all that, if the company issues a secondary to pay for the expansion, shareholders will likely be facing significant dilution. That's not good, either.
All told, Greenberg's analysis suggests owning Valeant going forward might be something like a game of hot potato. "When the deals eventually dry up, you do not want to be the one holding this stock."
Cramer agrees with Greenberg. "Even if we end up sitting out a lot of upside in the near-term, I'm telling you, it's just not worth the risk," Cramer said. "I've followed Herb's work for more than 20 years and I never want to be on the wrong side of one of his challenges."
Call Cramer: 1-800-743-CNBC
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