Valeant Surges After Reporting Positive Phase 3 Results for Psoriasis Drug

Is there a more hated drug stock in the world than $VRX?

This is easily the very worst major drug stock out there, with all sorts of headwinds. By all accounts, it appears the company is heading towards a watery grave. However, in the interim, there is opportunity for short squeezes, especially after reporting good clinical data.

Valeant Pharma announces ‘positive’ results from a second confirmatory pivotal Phase 3 study to assess the safety and efficacy of IDP-118 lotion in the treatment of plaque psoriasis

Within the Phase 3 study of 203 adult subjects with moderate to severe psoriasis, IDP-118 showed statistical significance (p < 0.001) to vehicle with a treatment success rate at 8 weeks of 35.76% to 6.98%. The primary endpoint of the 12-week study (8 weeks of treatment followed by 4 weeks of follow-up) was achievement of a “clear” to “almost clear” score and at least a 2 grade improvement based on an Investigator Global Assessment (IGA) at 8 weeks, and clear to almost clear and at least 2 grade improvement in the IGA at weeks 12, 6, 4 and 2 as secondary endpoints.

Shares are soaring early on. I expect the stock to continue higher, maybe even causing a buying frenzy — somewhat dependent on the overall health of the biotech sector, which has been good as of late.