Today’s Feature on Companies from the Biotech Sector: Adeptus Health and Valeant Pharmaceuticals

NEW YORK, NY / ACCESSWIRE / March 15, 2017 /
Long term success in the medical sector is dependent on a number of factors – innovation and demand for a particular drug; the use of a medical service, such as an urgent care clinic, by the public; or remaining price competitive within your industry. The two stocks that are highlighted have been in business for more than a decade, and are well-known brand names in the community. Investors should recognize when the writing on the wall tells them their investment does not have enough cash to fuel a recovery.

RDI Initiates
Coverage:

Adeptus Health Inc. https://ub.rdinvesting.com/news/?ticker=ADPT

Valeant Pharmaceuticals
Intl Inc. https://ub.rdinvesting.com/news/?ticker=VRX

Adeptus Health saw its stock price carved out by a third (36.21%) in Tuesday’s trading, as the price plunged to $1.48, down 84 cents per share. The company filed for a delay in reporting its 10K form to the Securities and Exchange Commission on March 2nd, giving rise to speculation that the company is in serious financial trouble as it disclosed material weaknesses with respect to internal control over financial reporting and its share price tanked by 57 percent on the same day. Investor lawsuits have followed. The recommendations from investment firms range wildly, from “buy” to “sell.” What is obvious is there is a lot of confusion in where the forward direction of the company will land it. The company reported a loss of $560 million in 2016, and has taken out a $7.5 million loan in the form of credit as it expressed substantial doubt over its ability to continue without committed long-term financing. In addition to the cash problems, Adeptus has hired a chief restructuring officer. It serves patients in Texas, Colorado, Arizona and Ohio and has about 3200 employees.

Access RDI’s Adeptus Health Research Report at: https://ub.rdinvesting.com/news/?ticker=ADPT

Valeant Pharmaceuticals International stock fell by $1.22, taking a 10 percent dive to close at $10.89 a share. The current thinking on The Street is that is headed even lower, perhaps to bankruptcy. The reason? Pershing Square’s Bill Ackman sold all of his stake (5.3 percent of the company) and took about a $3 billion loss for the decision. If you are not familiar with the brand name Valeant Pharmaceuticals, you are likely familiar with one of its cores assets- Bausch and Lomb eye care products. In fact, investors are saying the remaining divisions of Valeant are what has been driving the price of the stock down. In a decade it had spent billions to acquire companies such as Coria Laboratories for $95 million and DermaTech for $12.6 million. The end of the spending spree took place in 2015, as the company outbid its competition and acquired gastrointestinal treatment drug developer Salix Pharmaceuticals for $14.5 billion. Valeant was also in the news in 2015 for hiking prices of its drugs by several hundred to thousands percentages without any significant improvement in drug formula and invited spate of investigations. With nearly $30 billion debt pile, company drew out debt refinancing plan on March 6, which includes dropping protection on existing debt and issuing additional bonds and Valeant’s Papa also claimed last year to generate $8 billion cash by selling non-core assets. It is up to investors to decide whether it is too little too late or the company has chance to survive.

Access RDI’s Valeant Pharmaceuticals Research Report at: https://ub.rdinvesting.com/news/?ticker=VRX

Our Actionable Research on Adeptus Health Inc. (NYSE: ADPT) and Valeant Pharmaceuticals Intl Inc. (NYSE: VRX) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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SOURCE: RDInvesting.com

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