In a period of five days, Valeant Pharmaceuticals has shed roughly $5.3 billion in value, driven by an unabating stream of bad news and eroding investor sentiment.
Now its CEO has made one-on-one calls to reassure sell-side analysts, asking them to hold on, reported Bloomberg.
CEO Mike Pearson told analysts Tuesday that after a two-month absence from the Valeant (VRX), he needed some time to understand the state of the company, Bloomberg reported. He also added that the company would file its annual report, which has been delayed, as soon as possible.
Some analysts found the calls reassuring, including analysts with Nomura Securities and UBS, who gave buy ratings to the stock. Nomura set a 12-month price target of $175, while UBS set its target at $213. Others analysts felt more skeptical.
According to Bloomberg, Jefferies slashed Valeant’s price target from $172 to $106, while RBC moved its target from $194 to $85.
Valeant’s stock is trading at $67.44, up 3% since the market opened.
The Canadian company, which had a market cap of $22.25 billion at the opening bell Wednesday, has dropped 20% in value since Friday’s close, following news that the company was under investigation by the Securities and Exchange Commission. Stocks were also pushed downward over the weekend after the company revealed that its fourth quarter earnings report would be delayed and it would recall its 2016 forecast since Pearson was returning to his post from sick leave.
To make things worse for the company, the topic of drug prices have been a regular punching bag for presidential candidates this election cycle. Democratic presidential candidate Hilary Clinton slammed Valeant in a campaign ad on Tuesday.
Earlier this week, long-time Valeant proponent and shareholder Bill Ackman went on television to restate his confidence in the pharmaceutical giant.
