Wells Fargo Analysts David Maris believes Valeant Pharmaceuticals could be heavily impacted by the FDA's renewed focus on generic medicines, Investopedia reports.
Here's what you should know:
1. The FDA is attempting to ensure every drug has at least three versions available on the market to combat price gouging.
2. The FDA released a list of more than 200 drugs it believes could have their prices hiked. Mr. Maris wrote in a research note that "no company in our coverage universe is more exposed to this new FDA effort than Valeant," CNBC reports.
3. Mr. Maris believes companies will be able to create generics of several Valeant products.
4. The products on the list accounted for $713 million of Valeant's $9.67 billion in 2016 revenues.