Valeant Stock Drops Making Allergan Deal Tougher

Mark Melin

Published onAugust 1, 2014

Updated on May 13, 2021

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX), a “roll-up” company embroiled in a bitter battle to take over Botox-maker Allergan, Inc. (NYSE:AGN), reported earnings Thursday that showed climbing and strong growth.

Valeant's stock price tumbles after earnings

While the company was making a case to purchase Botox maker Allergan, Inc. (NYSE:AGN), which relies on its stock price as a currency in the acquisition, its saw this stock price tumble after its earnings announcement.

This is a problem for Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX), which Allergan, Inc. (NYSE:AGN) has accused of relying on buyout deals to expand its business, rather than strong management of its products. Valeant has acknowledged cost cutting after it...

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Mark Melin

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.