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Valeant Hits Highest Level In 4 Months

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Valeant Hits Highest Level In 4 Months

Valeant Pharmaceuticals Intl Inc (NASDAQ: VRX) shares are trading higher by $1.80, or 13 percent, at $15.48 in Thursday's session. As the money flowed into the biotech sector this week, Valeant was a bit overlooked until today's session.

And for good reason.

While many in the sector have been cut in half or even gone off the board over the last few years, Valeant shed more than $250 from its all-time high in August 2015 at $263.81 to its April 2017 low at $8.31.

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Another reason the stock may have been neglected in the recent rally is its burdensome debt and no clear indication that it will be free of regulatory scrutiny for its business practices. While many in the sector have to develop profitable drugs from their pipeline, Valeant must do battle in the courtroom as well.

Today's Move

Even with other biotechs opening much higher with follow-through from Wednesday's rally, Valeant opened only slightly higher. It immediately found support just under Wednesday's close ($13.68) at $13.64 and began to move higher.

As traders scrambled for a biotech they wouldn't have pay up for, the Street turned to Valeant. After all, it's a low-priced and fairly liquid stock. Evidence that the stock may only being rented for a day or two trade is the huge spike in volume in today's session. It has tripled its volume from Wednesday as 60 million shares have traded with an hour to go in Thursday's session.

So far the ensuing rally has taken Valeant's stock to $15.73, which marks the highest level since it peaked on February 28 at $16.48. It should be noted on that day it ended the session at $14.38 and was trading in the $10 handle within 10 sessions.

 

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