Valeant Investors Should Wait And See What Happens, Scotiabank Says

Valeant Pharmaceuticals Intl Inc

investors should take a wait and see approach, an analyst said on Monday. According to Scotiabank's Alan Ridgeway, anyone on the fence should "wait and see how the next few months play out." Ridgeway holds a Sector Perform and a $42 price target on the stick. The analyst also analyzed new TRx data from Valeant. TRx count is about 80 percent of October 2015 levels, while ophthalmology TRx count is near levels when the program began. Valeant's Jublia and Solodyn were down slightly from a week before, but Jublia's main competitor did fall further -- 17 percent -- last week. Scotiabank also discussed Valeant's Walgreens-related issues. "[W]e believe the economics of the Walgreens deal and potential pricing concessions being negotiated with managed care for VRX's main brand products Jublia and Xifaxan are headwinds for VRX in 2016," he wrote. "That said, it is early in the process on both fronts and we will continue to look for longer term changes in volume trends that may develop over time."