Papa News Positive for Valeant (VRX) - BMO Capital

BMO Capital analyst Alex Arfaei weighed in on Valeant Pharmaceuticals (NYSE: VRX) amid news Perrigo's CEO, Joseph Papa, is in discussions to become the company's next CEO.

Arfaei said, if true, this would be viewed favorably for VRX "as it removes another uncertainty for the stock. Mr. Papa is an industry veteran with extensive Pharma executive experience (Watson, DuPont, Searle)."

"Moreover, he has led Perrigo's through a number of acquisitions, including Elan in 2013, which was basically a tax inversion. Mr. Papa's focus on buying consumer and OTC businesses (e.g., Omega, GSK OTC assets) is well aligned with Valeant's strategy and key business units (e.g. Consumer, B+L)," he added.

PRGO stock performance under Papa was +900% until the hostile offer by Mylan in 2015, the analyst notes.

The analyst continues to believe that VRX could be on the verge of a significant inflection point; and look forward to reviewing the company's 10-K, which they hope will be filed on time by April 29, before they can get more constructive on the stock.

The firm reiterated an Outperform rating and $66 price target.

For an analyst ratings summary and ratings history on Valeant Pharmaceuticals click here. For more ratings news on Valeant Pharmaceuticals click here.

Shares of Valeant Pharmaceuticals closed at $33.35 yesterday.

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