Friday, December 3, 2010

Valeant Pharmaceuticals (NYSE:VRX) Must Wait on Potiga After FDA Decision

The decision by the FDA to hold off approval for Valeant Pharmaceuticals (NYSE:VRX) Dpilepsy drug Potiga was disappointing, as it'll set them back probably about six month, assuming they get approval at that time.

Canaccord said, "Although we are disappointed by the complete response for Potiga, our long-term outlook for the company remains unchanged. The bad news is that a possible approval for Potiga is delayed by three to six months, assuming that the companies can respond to the FDA’s questions early next year. The good news is that the FDA’s concerns were not related to the clinical package and should be relatively easy to address."

Canaccord Genuity maintains a "Buy" rating on Valeant, which closed Thursday at $27.72, gaining $0.80, or 2.97 percent. Canaccord lowered their price target on them from "$35.50 to $34.

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