Valeant Pharmaceuticals (NYSE:VRX)
Valeant Pharmaceuticals is having an incredible day in the market today, and for good reason. The company announced the appointment of a new CFO. Today, we'll talk about the news, how the stock reacted, and what we can expect to see from VRX ahead. So, let's get right to it...
VRX Appoints Paul Herendeen As CFO
Valeant Pharmaceuticals has been through quite a bit as of late. After being caught in a scandal and shown to have been lying to investors, the stock has fallen dramatically. However, there's a new CEO in town, and he is making some big changes. One of the most recent changes was an announcement early Monday morning that the company has hired Paul Herendeed as the CFO. This is the latest in a string of management changes that we've seen in VRX since the Philidor scandal that left the company in shambles.
Paul Herendeen was previously an executive at the animal healthcare company known as Zoetis (ZTS). In the announcement, we learned that Herendeen will be replacing Robert Rosiello, effective immediately.
It was also announced that Rosiello will not be leaving VRX entirely. Moving forward, he will stay on board at the company as the executive vice president of corporate development and strategy.
How The Stock Reacted To The News
As mentioned above, Valeant Pharmaceuticals is having an incredibly strong day in the market. After all, any moves that shake up existing management and continue to rebrand the way people view the company will likely lead to positive movement in the market. Currently (12:55), the stock is trading at $31.05 per share after a gain of $2.31 per share or 8.04% thus far today.
What I'm Expecting To See Moving Forward
Moving forward, there is a relatively mixed view among analysts. Personally, I have an overwhelmingly bullish opinion of what we can expect to see from VRX ahead. At the end of the day, the company did make a mistake that came to light late last year, and the stock did tank as a result. However, since then, we've seen several changes at the company. They are no longer working with Philidor, management has changed significantly, new contracts have been opened, and more. The announcement today of Herendeen being appointed as the company's CFO is just another point that shows that we're working with what could be perceived as an entirely new company. One that had nothing to do with the scandal.
With that said, looking at VRX from this point of view, the stock is incredibly promising. When we talk about Valeant Pharmaceuticals, we're talking about a company that has amassed a massive amount of products, many of which have proven to be successful. Also, the pipeline the company has is really second to none. Moving forward, I'm expecting to see an incredibly strong recovery as the company works to regain its footing and trust among investors. All in all, I'm expecting to see strong gains from the stock in the long run.