BHC
Bausch Health Companies Inc
Healthcare
10/12/2015
Presented
| Date | 10/09/2015 |
| Price | $175.94 |
| Market Cap | $60.59B |
| Ent Value | $106.48B |
| P/E Ratio | 70.94x |
| Book Value | $18.78 |
| Div Yield | 0% |
| Shares O/S | 344.40M |
| Ave Daily Vol | 3,125,641 |
| Short Int | 1.82% |
Current
| Price | $8.39 |
| Market Cap | $3.08B |
| Bausch Health Companies Inc is a multinational specialty pharmaceutical company that develops manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, eye health, neurology, and branded generics. The company operates through two operating and reportable segments: (i) Developed Markets and (ii) Emerging Markets. The Developed Markets segment consists of (i) sales in the U.S. of pharmaceutical products, OTC products, and medical device products, as well as alliance and contract service revenues, in the areas of eye health, dermatology and podiatry, aesthetics and dentistry, (ii) sales in the U.S. of pharmaceutical products indicated for the treatment of neurological and other diseases, as well as alliance revenue from the licensing of various products it developed or acquired, and (iii) pharmaceutical products, OTC products, and medical device products sold in Canada, Australia, New Zealand, Western Europe and Japan. The Emerging Markets segment consists of branded generic pharmaceutical products and pharmaceuticals, OTC products, and medical device products. Products are sold primarily in Central and Eastern Europe (primarily Poland and Russia), Asia, Latin America (Mexico, Brazil, and Argentina and exports out of Mexico to other Latin American markets), Africa and the Middle East. Valeant Pharmaceuticals was founded on March 29, 1994 and is headquartered in Laval, Canada. |
Please note, on 7/16/18 Valeant Pharmaceuticals International Inc (VRX) changed it’s company name and ticker to Bausch Health Companies Inc. (BHC). The content of this idea will make reference to the original company name and ticker symbol.
Publicly traded companies mentioned herein: Valeant Pharmaceuticals Intl Inc (VRX)
Highlights
The presenter is short shares of Valeant Pharmaceuticals (VRX) and sees the current share price (~$175) as an attractive entry point. There are numerous issues that have come to a head recently and it has become difficult for him to envision a scenario where the stock outperforms. Of particular concern are the pattern of management rushing to defend any decline in the stock price, numerous executive departures, and an alteration of CEO Michael Pearson’s comp plan that appears to allow him to dispose of stock. In addition, the FCF profile and debt are concerning when the accounting is opaque, at best. He is “inclined to hold the short position and see how the story plays out over the next 12-18 months, and there is no good reason the stock can’t go back to the $140s (where it started 2015).”
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.