Court Battle May Be Responsible For Spiking Stock

Court Battle May Be Responsible For Spiking Drugmaker's Stock
http://www.investors.com/news/technology/is-a-court-battle-responsible-for-spiking-this-drugmakers-stock

Valeant Pharmaceuticals (VRX) stock has gained 42% since Monday, after a Delaware judge sided with Valeant on two patent issues related to antibiotic Xifaxan in a court case vs. Actavis Laboratories.

In midday trading on the stock market today, Valeant stock was up less than 1%, near 13.90, after rising 24.1% on Tuesday, 5.2% on Wednesday and 8.8% on Thursday. Shares have traded above their 50-day moving average since Tuesday.

Evercore analyst Umer Raffat attributes the increase to patent litigation surrounding Xifaxan, Valeant's most important drug accounting for about 15% of its earnings before interest, tax, depreciation and amortization.

The preview of a sealed court document shows a Delaware judge ruled in favor of Valeant on two issues of four. Valeant and Actavis — whose parent is Teva Pharmaceuticals (TEVA) — will resolve one issue outside of court. The judge also extended a 30-month stay preventing Actavis from creating a generic copy of Xifaxan.

 

Long Valeant!

Long VRX!

Long Xifaxan!

 

I know! I love losing money!