Today's Research Reports on Stocks to Watch: Teva Pharmaceutical and Valeant Pharmaceuticals

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Accesswire 8-Aug-2017 8:20 AM
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NEW YORK, NY / ACCESSWIRE / August 8, 2017 / Valeant Pharmaceuticals had a positive day in the green yesterday, despite Teva Pharmaceuticals shares plummeting. It was just last week that Valeant saw its shares drop 10% after Teva reported bad earnings and guidance. This time Teva's downfall didn't affect the company. Valeant also announced that it had received a Complete Response Letter from the FDA for latanoprostene bunod ophthalmic solution, 0.024%. Teva shares dropped after a Morgan Stanley analyst cut his price target and lowered the stock to a rating of "underweight."
RDI Initiates Coverage on:
Teva Pharmaceutical Industries Limited https://ub.rdinvesting.com/news/?ticker=TEVA
Valeant Pharmaceuticals International, Inc. https://ub.rdinvesting.com/news/?ticker=VRX
Teva Pharmaceutical Industries Limited started the week off by tumbling into the red on Monday. Shares closed down 9.54% and even hit a new low of $18.50. So why the big drop? Analysts at Morgan Stanley downgraded the stock from "equal weight" to "underweight" and gave it a price target of $16 a share, 16% below its previous price target. The stock has now fallen for eight consecutive trading days and Morgan Stanley analyst David Risinger said there could be more losses on the way. He said, "We believe that Teva's disappointing generic business performance will take more time to improve given a combination of the generic industry's intensifying secular challenges and Teva's own difficulty in executing on its pipeline." He also said, "Despite the stock collapsing by 34% since 2Q:17 results on Aug. 3, we believe Teva's current ~8.2x EV/2018e EBITDA... is still too high as the multiple is marginally above than 5-year historical average of 8x, which includes 2014-2015 during which time the generic industry enjoyed price inflation and gCopaxone risk was further away." gCopaxone is Teva's key multiple sclerosis drug.
Access RDI's Teva Pharmaceutical Industries Limited Research Report at: https://ub.rdinvesting.com/news/?ticker=TEVA
Valeant Pharmaceuticals International, Inc.'s shares closed up 1.59% on a little over 16 million shares traded on Monday. The multinational specialty pharmaceutical company announced that it has received a Complete Response Letter from the FDA regarding the New Drug Application for latanoprostene bunod ophthalmic solution, 0.024%. The candidate is an investigative intraocular pressure lowering single-agent eye drop for patients with open angle glaucoma or ocular hypertension. The organization's Complete Response Letter only referred to a Current Good Manufacturing Practice (CGMP) inspection at Bausch + Lomb's manufacturing facility in Florida and did not identify any efficacy or safety concerns with respect to the NDA or additional clinical trials needed for the approval of the NDA for the candidate. Valeant said that it will work closely with the FDA to determine the appropriate next steps for the NDA.
Access RDI's Valeant Pharmaceuticals International, Inc. Research Report at: https://ub.rdinvesting.com/news/?ticker=VRX
Our Actionable Research on Teva Pharmaceutical Industries Limited (NYSE: TEVA) and Valeant Pharmaceuticals International, Inc. (NYSE: VRX) can be downloaded free of charge at Research Driven Investing.
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