Here’s what you need to know.
1. Valeant was scandal ridden in 2016.The company made news throughout last year for hiking drugs’ prices and engaging in faulty financial reporting practices.
2. Former CEO J. Michael Pearson resigned from his position following the price gouging scandal.
3. After Mr. Pearson resigned, Joseph C. Papa became CEO. His first act was starting a “rebuilding” process. He dismissed the company’s third quarter results which Zacks speculates is a sign of further trouble in the future.
4. Several of Valeant’s neurology and dermatology products’ patents have lapsed, therefore introducing generic competition. The company’s Bausch + Lomb international market is declining because of lower realized prices.
5. Moody’s Investor Service also downgraded the company from a B3 credit rating to a B2, limiting its borrowing power.
Zacks said the election of President-elect Donald Trump and his anti-price gouging positioning will mean “no end to Valeant’s woes in 2017.”
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