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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.04
VRX's Cash to Debt is ranked lower than
61% of the 750 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.39 vs. VRX: 0.04 )
VRX' s 10-Year Cash to Debt Range
Min: 0.03   Max: No Debt
Current: 0.04

Equity to Asset 0.18
VRX's Equity to Asset is ranked lower than
58% of the 712 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 0.60 vs. VRX: 0.18 )
VRX' s 10-Year Equity to Asset Range
Min: 0.18   Max: 0.85
Current: 0.18

0.18
0.85
F-Score: 4
Z-Score: 0.92
M-Score: -1.98
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) -7.10
VRX's Operating margin (%) is ranked higher than
52% of the 710 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 9.34 vs. VRX: -7.10 )
VRX' s 10-Year Operating margin (%) Range
Min: -9.32   Max: 45.51
Current: -7.1

-9.32
45.51
Net-margin (%) -15.01
VRX's Net-margin (%) is ranked higher than
51% of the 710 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 7.48 vs. VRX: -15.01 )
VRX' s 10-Year Net-margin (%) Range
Min: -47.86   Max: 54.96
Current: -15.01

-47.86
54.96
ROE (%) -16.92
VRX's ROE (%) is ranked higher than
50% of the 713 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 7.00 vs. VRX: -16.92 )
VRX' s 10-Year ROE (%) Range
Min: -62.32   Max: 123.14
Current: -16.92

-62.32
123.14
ROA (%) -3.10
VRX's ROA (%) is ranked higher than
53% of the 742 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 3.94 vs. VRX: -3.10 )
VRX' s 10-Year ROA (%) Range
Min: -13.36   Max: 38.74
Current: -3.1

-13.36
38.74
ROC (Joel Greenblatt) (%) -18.51
VRX's ROC (Joel Greenblatt) (%) is ranked higher than
52% of the 732 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 14.50 vs. VRX: -18.51 )
VRX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -33.77   Max: 276.11
Current: -18.51

-33.77
276.11
Revenue Growth (%) 43.90
VRX's Revenue Growth (%) is ranked higher than
95% of the 552 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 5.10 vs. VRX: 43.90 )
VRX' s 10-Year Revenue Growth (%) Range
Min: -8.1   Max: 74.4
Current: 43.9

-8.1
74.4
EBITDA Growth (%) 110.10
VRX's EBITDA Growth (%) is ranked higher than
98% of the 507 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.80 vs. VRX: 110.10 )
VRX' s 10-Year EBITDA Growth (%) Range
Min: -36   Max: 110.1
Current: 110.1

-36
110.1
EPS Growth (%) 36.60
VRX's EPS Growth (%) is ranked higher than
91% of the 510 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.40 vs. VRX: 36.60 )
VRX' s 10-Year EPS Growth (%) Range
Min: -34   Max: 92.8
Current: 36.6

-34
92.8
» VRX's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

VRX Guru Trades in Q1 2013

Steve Mandel 4,912,495 sh (New)
Andreas Halvorsen 4,981,683 sh (+28.41%)
Lou Simpson 1,678,038 sh (+12.98%)
Jeremy Grantham 64,629 sh (+7.46%)
Glenn Greenberg 6,594,015 sh (+5.16%)
Julian Robertson 294,900 sh (+0.31%)
Ruane Cunniff 34,716,042 sh (+0.11%)
Mariko Gordon 51,912 sh (unchged)
Jeff Ubben 17,559,302 sh (unchged)
Chuck Royce 55,768 sh (unchged)
Jean-Marie Eveillard 1,358,442 sh (unchged)
Wallace Weitz 2,082,750 sh (-0.35%)
Private Capital 715,051 sh (-11.35%)
Chris Davis 164,909 sh (-11.97%)
Steven Cohen 13,136 sh (-73.28%)
» More
Q2 2013

VRX Guru Trades in Q2 2013

Lee Ainslie 561,601 sh (New)
Pioneer Investments 3,200 sh (New)
Diamond Hill Capital 3,250 sh (New)
Andreas Halvorsen 9,492,256 sh (+90.54%)
Steve Mandel 8,012,507 sh (+63.1%)
Jeremy Grantham 88,929 sh (+37.6%)
Jeff Ubben 18,923,877 sh (+7.77%)
Chuck Royce 57,568 sh (+3.23%)
Julian Robertson 299,000 sh (+1.39%)
Glenn Greenberg 6,657,451 sh (+0.96%)
Wallace Weitz 2,095,230 sh (+0.6%)
Ruane Cunniff 34,738,116 sh (+0.06%)
Lou Simpson 1,661,625 sh (-0.98%)
Mariko Gordon 48,783 sh (-6.03%)
Jean-Marie Eveillard 1,179,242 sh (-13.19%)
Private Capital 588,056 sh (-17.76%)
Chris Davis 132,579 sh (-19.6%)
Steven Cohen 3,157 sh (-75.97%)
» More
Q3 2013

VRX Guru Trades in Q3 2013

Louis Moore Bacon 4,880 sh (New)
Jeremy Grantham 284,340 sh (+219.74%)
Pioneer Investments 7,300 sh (+128.13%)
Steven Cohen 5,301 sh (+67.91%)
Diamond Hill Capital 3,675 sh (+13.08%)
Jeff Ubben 18,923,877 sh (unchged)
Lee Ainslie Sold Out
Lou Simpson 1,660,917 sh (-0.04%)
Ruane Cunniff 34,647,147 sh (-0.26%)
Glenn Greenberg 6,573,589 sh (-1.26%)
Wallace Weitz 2,042,835 sh (-2.5%)
Steve Mandel 7,781,707 sh (-2.88%)
Private Capital 568,332 sh (-3.35%)
Andreas Halvorsen 8,949,608 sh (-5.72%)
Mariko Gordon 44,968 sh (-7.82%)
Chris Davis 115,544 sh (-12.85%)
Jean-Marie Eveillard 902,742 sh (-23.45%)
Julian Robertson 157,000 sh (-47.49%)
Chuck Royce 5,200 sh (-90.97%)
» More
Q4 2013

VRX Guru Trades in Q4 2013

Jim Simons 364,189 sh (New)
Lee Ainslie 1,633,838 sh (New)
Diamond Hill Capital 4,675 sh (+27.21%)
Jeff Ubben 18,923,877 sh (unchged)
Pioneer Investments 7,300 sh (unchged)
Jean-Marie Eveillard 902,742 sh (unchged)
Julian Robertson Sold Out
Lou Simpson 1,658,555 sh (-0.14%)
Steve Mandel 7,756,485 sh (-0.32%)
Mariko Gordon 44,702 sh (-0.59%)
Ruane Cunniff 34,305,656 sh (-0.99%)
Louis Moore Bacon 4,706 sh (-3.57%)
Andreas Halvorsen 8,329,004 sh (-6.93%)
Glenn Greenberg 6,113,227 sh (-7%)
Wallace Weitz 1,849,200 sh (-9.48%)
Chuck Royce 4,600 sh (-11.54%)
Jeremy Grantham 248,074 sh (-12.75%)
Chris Davis 97,534 sh (-15.59%)
Private Capital 369,896 sh (-34.92%)
Steven Cohen 2,214 sh (-58.23%)
» More
» Details

Insider Trades

Latest Guru Trades with VRX

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Julian Robertson 2013-12-31 Sold Out 2.5%$103.04 - $117.42 $ 133.2322%0
Lee Ainslie 2013-12-31 New Buy2.5%$103.04 - $117.42 $ 133.2322%1633838
Glenn Greenberg 2013-12-31 Reduce -7%2.16%$103.04 - $117.42 $ 133.2322%6113227
Wallace Weitz 2013-12-31 Reduce -9.48%0.76%$103.04 - $117.42 $ 133.2322%1849200
Ruane Cunniff 2013-12-31 Reduce -0.99%0.21%$103.04 - $117.42 $ 133.2322%34305656
Julian Robertson 2013-09-30 Reduce -47.49%1.57%$88.77 - $106.12 $ 133.2337%157000
Lee Ainslie 2013-09-30 Sold Out 0.65%$88.77 - $106.12 $ 133.2337%0
Glenn Greenberg 2013-09-30 Reduce -1.26%0.33%$88.77 - $106.12 $ 133.2337%6573589
Wallace Weitz 2013-09-30 Reduce -2.5%0.18%$88.77 - $106.12 $ 133.2337%2042835
Jean-Marie Eveillard 2013-09-30 Reduce -23.45%0.08%$88.77 - $106.12 $ 133.2337%902742
Steve Mandel 2013-06-30 Add 63.1%1.32%$71.79 - $91.8 $ 133.2369%8012507
Jeff Ubben 2013-06-30 Add 7.77%1.2%$71.79 - $91.8 $ 133.2369%18923877
Lee Ainslie 2013-06-30 New Buy0.65%$71.79 - $91.8 $ 133.2369%561601
Glenn Greenberg 2013-06-30 Add 0.96%0.25%$71.79 - $91.8 $ 133.2369%6657451
Steve Mandel 2013-03-31 New Buy1.9%$59.77 - $75.02 $ 133.2399%4912495
Glenn Greenberg 2013-03-31 Add 5.16%1.28%$59.77 - $75.02 $ 133.2399%6594015
Lou Simpson 2013-03-31 Add 12.98%0.91%$59.77 - $75.02 $ 133.2399%1678038
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Valeant Pharmaceuticals International Inc

Sequoia Fund's Discussion of Valeant Pharmaceuticals - Mar 07, 2014

Our largest holding, Valeant, had an outstanding year. Full year numbers have not been reported yet, but we believe that cash earnings per share should exceed $6, well ahead of last year’s result. The big news of the year was the acquisition of Bausch & Lomb for nearly $9 billion in August. The deal should be highly accretive and, together with modest organic growth in its other operations, enable cash earnings per share to increase significantly in 2014. The integration of Bausch & Lomb appears on track with cost synergies, originally estimated by management at around $800 million, now expected to be over $850 million.



Cash earnings per share have probably more than tripled over the last four years. While we do not expect this growth trajectory to continue at such a rapid pace in the future, we do believe the company can continue to produce positive organic growth supplemented by ongoing acquisitions that will enable Valeant to grow cash earnings per share at an above-average rate.



We like Valeant’s approach to the pharmaceutical business. It has acquired a diverse stable of branded, generic and OTC drugs and, more recently, medical devices including dermal fillers and contact lenses. Many of its products are steady sellers in specialty categories like dermatology and ophthalmology. In our view, Valeant is essentially a value investor in health care products.





Source: Sequoia Fund's 2013 Annual Report - Management's Discussion of Fund Performance



Check out Sequoia Fund latest stock trades

Wallace Weitz Comments on Valeant Pharmaceuticals - Jul 15, 2013

Valeant (VRX--$86)(VRX) Valeant Pharmaceuticals continues to make acquisitions (most recently agreeing to purchase Bausch and Lomb), wring cost savings from the combined operations, and grow earnings per share. The outlook for Valeant’s well-diversified portfolio of 1,100 products is relatively predictable. The company has a robust pipeline of acquisition candidates and we expect Valeant to build on its dermatology and eye care franchises over the next few years.

From Wallace Weitz’s second quarter 2013 letter to shareholders.


Check out Wallace Weitz latest stock trades

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Sequoia Fund's Discussion of Valeant Pharmaceuticals
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Wallace Weitz Comments on Valeant Pharmaceuticals
Valeant (VRX--$86)(VRX) Valeant Pharmaceuticals continues to make acquisitions (most recently agreeing to purchase Bausch and Lomb), wring cost savings from the combined operations, and grow earnings per share. The outlook for Valeant’s well-diversified portfolio of 1,100 products is relatively predictable. The company has a robust pipeline of acquisition candidates and we expect Valeant to build on its dermatology and eye care franchises over the next few years. Read more...
Weekly Top Insider Buys
GuruFocus Insider Data, these are the largest insider buys during the past week. The overall trend of insiders is illustrated in the chart below: Read more...

Ratios

vs
industry
vs
history
P/B 8.50
VRX's P/B is ranked lower than
67% of the 700 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.84 vs. VRX: 8.50 )
VRX' s 10-Year P/B Range
Min: 1   Max: 9.52
Current: 8.5

1
9.52
P/S 7.50
VRX's P/S is ranked lower than
68% of the 722 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.99 vs. VRX: 7.50 )
VRX' s 10-Year P/S Range
Min: 1.52   Max: 9.22
Current: 7.5

1.52
9.22
PFCF 49.60
VRX's PFCF is ranked higher than
53% of the 330 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 24.86 vs. VRX: 49.60 )
VRX' s 10-Year PFCF Range
Min: 2.69   Max: 295.8
Current: 49.6

2.69
295.8
EV-to-EBIT 250.00
VRX's EV-to-EBIT is ranked lower than
85% of the 593 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 19.45 vs. VRX: 250.00 )
VRX' s 10-Year EV-to-EBIT Range
Min: 5.2   Max: 1633.8
Current: 250

5.2
1633.8

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 4.60
VRX's Price/DCF (Projected) is ranked lower than
59% of the 346 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.70 vs. VRX: 4.60 )
VRX' s 10-Year Price/DCF (Projected) Range
Min: 0.38   Max: 8.81
Current: 4.6

0.38
8.81
Price/Median PS Value 1.90
VRX's Price/Median PS Value is ranked lower than
63% of the 665 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.10 vs. VRX: 1.90 )
VRX' s 10-Year Price/Median PS Value Range
Min: 0.51   Max: 6.57
Current: 1.9

0.51
6.57
Earnings Yield (Greenblatt) 0.40
VRX's Earnings Yield (Greenblatt) is ranked lower than
70% of the 595 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 4.80 vs. VRX: 0.40 )
VRX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 19.2
Current: 0.4

0.1
19.2
Forward Rate of Return (Yacktman) 31.91
VRX's Forward Rate of Return (Yacktman) is ranked higher than
95% of the 532 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.45 vs. VRX: 31.91 )
VRX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 3.8   Max: 48.2
Current: 31.91

3.8
48.2

Business Description

Industry: Drug Manufacturers » Drug Manufacturers - Specialty & Generic
Compare:TKPYY, TEVA, AGN, FRX, MRX » details
Traded in other countries:VRX.Canada, BVF.Germany
Valeant Pharmaceuticals International Inc was formerly known as Biovail Corporation. It is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. Valeant is focused on the neurology and dermatology therapeutic areas primarily in the United States, Canada, Mexico, Brazil, Europe and Australia. The Company's specialty pharmaceutical and over-the-counter products are marketed under brand names and are sold in the United States, Canada, Australia and New Zealand, where its focus most of its efforts on products in the dermatology and neurology therapeutic classes. The Company also has branded generic, branded, and OTC operations in Europe, Latin America, South East Asia and South Africa. The Company has five business segments comprising of U.S. Neurology and Other, U.S. Dermatology, Canada and Australia, Branded Generics — Europe and Branded Generics — Latin America. The Company's principal Neurology and Other products are: Wellbutrin XL and Xenazine. Its principal dermatology products are: Zovirax Ointment, Xerese, Elidel, Acanya gel, Atralin gel. Its principal OTC products are: CeraVe, Kinerase. The Company's principal products sold in the Canadian market are: Cesamet, Tiazac XC, Wellbutrin XL. Its principal OTC products in Canada are: Cold-FX and in Australian market are: Duromine/Metermine, Cough and Cold OTC product, Difflam, Duro-Tuss and Rikodeine. The Branded Generics — Europe segment generates revenues in more than 20 countries in Central and Eastern Europe from branded generic pharmaceutical products, OTC products and from agency/in-licensing arrangements with other research-based pharmaceutical companies. Products are sold primarily in Poland, Serbia, Hungary, Croatia and Russia. The Company's combined European branded generics business now covers a broad range of treatments including antibiotics, treatments for cardiovascular and neurological diseases, antifungal medications and diabetic therapies among many others. The Branded Generics — Latin America segment generates revenues from branded generic pharmaceutical products and OTC products in Mexico and Brazil and exports out of Mexico to other Latin American markets. The Company's portfolio covers a broad range of therapeutic classes including vitamin deficiency, antibacterials and dermatology. Its main product in this market is Bedoyecta, a brand of vitamin B complex (B1, B6 and B12 vitamins) products. The Company's competitors include specialty and large pharmaceutical companies, biotechnology companies, OTC companies, academic and other research and development institutions and generic manufacturers, both in the U.S., Canada and abroad. The Company is subject to laws and regulations concerning the environment, safety matters, regulation of chemicals and product safety in the countries where it manufactures and sells p

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