TD Securities maintained a Buy rating on Valeant Pharmaceuticals (NYSE: VRX) but lowered its price target to $160.00 (from $260.00). Analyst Lennox Gibbs lowered Q4 EPS to $3.74 (from $4.11) and FY EPS to $16.16 (from $16.84) to reflect the business disruptions triggered by the discontinuation of its Philidor relationship.

"Management provided sufficient disclosure regarding its revised Specialty Pharmacy strategy to facilitate preliminary estimates of the financial impact from the recent disruption. However, a speculative cloud could continue to overhang the stock until there is more conclusive information regarding Philidor and other ongoing investigations. The call provided positive reassurances on some areas of concern, but our target is meaningfully reduced to reflect the likelihood that sentiment continues to weigh heavily on the multiple," said Gibbs.

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Shares of Valeant Pharmaceuticals closed at $83.68 yesterday.