Valeant shares drop 23% in March: 4 key notes

Laval, Canada-based Valeant Pharmaceuticals saw its share price drop 23 percent in March 2017, The Motley Fool reports.

The Motley Fool identified four issues that contributed to the decrease.

1. In the fourth quarter of fiscal year 2016:

  • Valeant’s Branded Rx drug segment saw its sales drop 17 percent.
  • Revenues from its Bausch & Lomb operation dropped 1 percent.
  • Valeant set an EBITDA between $3.55 billion to $3.7 billion, which was approximately two times more than what it will pay in interest on its debt. Motley Fool said, “That’s worrisomely low.”

2. Valeant completed a series of refinancing deals. Although the refinancing pushes back its debt schedule, it adds fees or a higher interest rate.

3. Longtime Valeant supporter and hedge fund manager Bill Ackman sold his entire state in the company. Mr. Ackman lost approximately $4 billion from the investment.

4. Former CEO J. Michael Pearson announced that he was suing Valeant over unpaid compensation.

The Motley Fool said there’s no simple fix to Valeant’s issues. It recommends avoiding the stock.
http://www.beckersasc.com/gastroenterology-and-endoscopy/valeant-s-former-ceo-suing-drugmaker-over-3m-withheld-shares-6-insights.html

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Takeda, Finch Therapeutics developing inflammatory bowel disease microbiome therapy: 4 notes

Osaka, Japan-based Takeda and Somerville, Mass.-based Finch Therapeutics entered into a global collaboration agreement to develop FIN-524, a synthetic microbiome therapy for inflammatory bowel disease.

Here’s what you should know.

1. FIN-524 is a live biotherapeutic product in preclinical research. It consists of strains linked to favorable clinical outcomes in microbiota transplantation studies.

2. Takeda paid $10 million to obtain the rights to develop and commercialize the drugs. Finch has additional milestone-based benefits.

3. Finch CEO Mark Smith, PhD, said in a release, “Takeda’s deep GI expertise and recent success in bringing therapies to IBD patients complements our own expertise in microbiome engineering.”

4. Takeda’s Head of Gastroenterology Drug Discovery Gareth Hicks, PhD, said Takeda partners with scientists and companies to develop new therapeutic options to patients.

More articles on gastroenterology:
Missouri health system names gastroenterologist Dr. Kevin Byrne ‘Physician of the Year’: 4 key notes
GI leader to know: Dr. Amy Oxentenko of Mayo Clinic
CMS adds Cologuard to Medicare Advantage Star Ratings program: 4 key notes

© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.