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Valeant: It's More Than Just Dermatology

Shares of Valeant Pharmaceuticals International (VRX) sold off earlier this month after the company received a Complete Response Letter from the Food and Drug Administration concerning its plaque psoriasis Duobrii.  However, Mizuho's Irina Koffler argues that the selloff is overdone, as she believes that Xifaxan, the traveler's diarrhea and irritable-bowel-syndrome treatment, is Valeant's key growth driver, rather than its dermatology portfolio.  She reiterated a Buy rating on Valeant Friday and raised her price target by $4 to $31. The SPDR S&P Pharmaceuticals ETF (XPH) is up 0.5% to $43.18 and the Health Care Select Sector SPDR ETF (XLV) is up 0.8% to $83.92.