Valeant Pharma shares fall following downgrade

NEW YORK - Shares of Valeant Pharmaceuticals International Inc. declined Thursday following a downgrade from a Leerink Swann analyst, who said the stock has ascended to a fair price.

Valeant shares have climbed 39 percent since May 5, when the company reported its first-quarter results and raised its annual profit forecast. The stock reached a four-year high of $26.22 on June 25.

Analyst Gary Nachman said the stock price now reflects a greater profit and expectations for Valeant's drug candidate retigabine. He downgraded the stock to "Market Perform" from "Outperform."

In afternoon trading, shares of the Aliso Viejo, Calif.-based company fell 73 cents, or 3.1 percent, to $22.99.

Valeant plans to request FDA approval for retigabine, an experimental treatment for epilepsy and post-shingles pain, in the third quarter. Valeant is developing the drug in a partnership with GlaxoSmithKline PLC.

Nachman said he is waiting for more information on retigabine's effects against post-shingles pain. While he believes the drug is safe, he said expectations for its commercial potential have been raised, and more data won't be available until the end of the year.

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