- Embattled pharma company Valeant Pharmaceuticals is changing its name to Bausch Health Companies as part of a turnaround plan.
- Valeant, a former stock market darling, has had a rough couple of years after its pricing practices came under scrutiny in 2015. The stock is down about 90% over the past three years.
- The name-change goes into effect in July.
Farewell, Valeant Pharmaceuticals. Hello, Bausch Health Companies.
The embattled drugmaker is changing its name to Bausch Health Companies as it seeks to improve its image after a rough couple of years filled with controversies over its pricing practices. Valeant’s stock jumped as much as 8% before markets opened Tuesday on the news after raising its revenue forecast for 2018 when it announced first quarter earnings.
The new name – and corresponding $BHC ticker – will go into effect in July.
“Now is the right time in our turnaround to unite our Company’s core businesses, subsidiaries and brands under the Bausch Health name,” CEO Joe Papa said in a news release. “We believe Bausch Health Companies more accurately represents the full scope of the Company today – a leader in the development and manufacture of a wide range of pharmaceutical, medical device and over-the-counter products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology.”
Once a stock market darling, Valeant’s stock has fallen about 90% over the past three years after being called out for some of its pricing and business practices. A former executive is currently in the middle of a fraud trial related to his actions while at the company.
Valeant has also been saddled down with debt after years of acquisitions. The company said in a news release that it’s been able to pay down about 20% of that debt over the last two years.
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