Market Overview

A Visual Look At Valeant's Dark Monday

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A Visual Look At Valeant's Dark Monday

Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) started the week lower with a 10.7 percent decline in Monday's regular session and 7 percent decline after hours. The selloff was driven by several catalysts.

Premarket

Shares gained almost 2 percent in the premarket following positive commentary by JPMorgan. This commentary followed a downgrade by Wells Fargo last week, which kicked off a $15 decline.

Early Trading

Bearish trading started early into the regular session. At 1:35 p.m. ET, 2,584 $60 puts traded at the $1.60 ask. A $60 strike represents $15.5 million of notional value. Traders speculated to the Benzinga newsdesk that someone was aware of bearish news not yet released.

Late Afternoon

At 3:40 p.m., Bloomberg reported CVS Health (NYSE: CVS) may no longer carry Valeant's Jublia. Anacor Pharmaceuticals Inc (NASDAQ: ANAC) shares moved higher; the company's Kerydin is considered a competing product.

After Hours

Negative headlines continued about an hour later when Dow Jones reported Valeant may have to restate earnings stemming from an internal review of drugs sold to Philidor Pharmacy. Controversy related to questionable distribution practices with Philidor triggered a selloff in late 2015. This selloff was especially prominent because the stock is widely held among hedge funds.

Shares traded as low as $68 in Monday's extended hours before climbing higher early in Tuesday's pre-market session.

Posted-In: PhilidorNews Health Care Markets Movers General Best of Benzinga

 

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