Valeant Pharmaceuticals International (NYSE:VRX)

CAPS Rating: 3 out of 5

A global specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products, primarily in the areas of neurology, infectious disease, and dermatology.

Recs

1
Player Avatar BSHumphreyII (80.63) Submitted: 4/28/2010 10:55:00 PM : Outperform Start Price: $17.33 VRX Score: +169.80

Valeant is a high-momentum growth pick. They've had monster EPS growth in the past, but that has slowed somewhat. Sales growth is steady in the low 30s, though. Their new anti-epilepsy drug Retigabine is moving through the pipeline and has the potential to be a huge winner.There's some serious risk with the potential reward though, so be careful. Valeant aggressive acquisition strategy could be spreading them thin, and they're using significantly more leverage than their competitors in the process. One wrong step could make Valeant's sweet fundamentals turn sour in a hurry.All said, though, VRX is a big growth story that is quickly moving up in the pharmaceutical world. It should be worth a buy, but stay on top of the news and do your homework.

Featured Broker Partners


Advertisement