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Why has Valeant Pharmaceuticals (VRX) been so heavily accumulated of late? More importantly, why are insiders buying it heavily as well? A quick glance at the product pipeline may answer a few key questions.
Valeant recently patented and began marketing a new drug for acne - Acanya - which has created something of a buzz from the dermatology community. Acanya has been approved since March, and the actual market data in terms of prescriptions will be coming to light soon. Early Acanya results are not likely to be earth-shattering, but could be quite good.
As for what Valeant Pharmaceuticals has in the pipeline...
Retigabine has proven to be an encouraging seizure disorder treatment in its Phase II testing. A patent is probably a year or so away; approval is much further down the road.
Taribavirin likely has a bigger market to work with (as in billions of dollars) than Retigabine, though its future is a little less certain than Retigabine's. Questions about Taribavirin popped up after some troubling data was posted in May. However, the problem may have simply been a dose that was too low to make that study meaningful. Stay tuned on that front.
IDP-115 is the current name for the third biggie in the pipeline... the not-yet named treatment for adult acne looks promising so far. 
What should we look for in the near future from Valeant Pharmaceuticals? Early results from the acne drug could be quite compelling. Earnings will be released on Tuesday, August 4th.
Also, let's not overlook that Valeant acquired Tecnofarma today, a Mexican-based manufacturer of generic drugs. Valeant entered the government as well as the private-label market by making the purchase.
Longer term, VRX could be a 'hold' based on some promising products likely to hit the market over the next 18 months.
Even further down the road, the rumors that Glaxo has been working with Valeant Pharmaceuticals forces one to ask why, and what for? A partnership? Licensing deal? A buyout? Who knows, but the whispers have been too persistent to ignore.
Given the potential upside of VRX shares, we're going to add Valeant Pharmaceuticals to our ongoing research watchlist.
