Summary Known Facts: New business plan includes more R&D, small price hikes and less M&A. Hence the story has changed. By focusing on what we know and EV/Sales, we can avoid discussion on GAAP vs. non-GAAP figures and get to a valuation. Back of the envelop puts VRX enterprise value and hence equity value much below the current stock price. The drama … [Read more...]

Guys, if you haven't been following the Valeant story.  Then wake up!  :)  This is better than Prison Break and Star Wars.   Recap:  VRX is pharma hedge fund darling.  Largest position in Ackman's portfolio.  VRX selling point is that they don't do R&D as it costs too much, so they acquire drug companies, fire the employees and push up the price of drugs.  So huge growth, … [Read more...]