Bill Miller’s view on Valeant Pharmaceuticals
About a year ago, legendary investor Bill Miller said at the Delivering Alpha Conference in September 2016 that he liked Valeant Pharmaceuticals (VRX). He said the stock could see some upside from its level of $27.
Valeant Pharmaceuticals’ performance
The stock was trading at nearly $27 in September 2016. Now it’s trading at $13. The stock saw a very poor performance in the last two years. Between July 2015 and June 2017, the stock fell nearly 95%. The broader market S&P 500 Index (SPY) (IWM) returned nearly 18% during the same period. The Health Care Select Sector SPDR ETF (XLV), which tracks the performance of the health care sector, rose nearly 5.5% during the same period.
Bill Miller said that Valeant’s CEO, Joseph Papa, had already taken various steps to revive its performance. It has already made some asset sales to reduce the company’s debt. The company has also adopted a new business strategy that could be an important driver for it. Miller expects that the stock could go up to $60 in the next three to five years.