Valeant Shares Surge as Credit Analyst Says Reaction ‘Overdone’
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Shares of embattled drugmaker Valeant Pharmaceuticals International Inc. rose the most in almost nine months as a credit analyst said investors’ concerns over the company’s pricing practices and business model were “overdone.”
“We think it is important that investors not lose sight of the broader fundamental picture –- namely that these are asset-rich, high-cash-flow companies,” Citigroup Global Markets analyst Murali Ganti wrote in a note to clients on Thursday, referring to Valeant, Endo International Plc and Mallinckrodt Plc. Shares of the three drugmakers have fallen after scrutiny of their acquisitions and product pricing practices.