Diamonds and Dogs
Every dog has its day. The rollercoaster ride continues as Valeant Pharmaceuticals (VRX) jumped 10% on positive news for once. A special board committee completed an internal investigation without discovering additional financial fallout from the firm's previous ties to a controversial pharmacy company, Philidor. Valeant also said they plan to meet a key April 29 filing deadline required to avoid potential default on debt obligations. Even with today's rebound, the stock is still down 72% year-to-date.
The government strikes down another one. Ireland based drug company, Allergan (AGN) saw its stock drop $41 or 15% after the Treasury Department created a new rule that threatens the company's proposed merger of Pfizer. Last year the company announced that it would merge with Pfizer and move its operations to Ireland. The move would create one of the biggest tax inversions ever, but the US government or the US Treasury says enough is enough. Looks like these deals will be tougher to create going forward.