Embattled drug maker Valeant finally got a bit of good news as the Food and Drug Administration (FDA) approved its bowel cleanser product PLENVU, manufactured by subsidiary Salix. Valeant stock spiked 15% in early Tuesday trading following the FDA approval and an earnings report that raised estimates of its full-year 2018 revenues by $50 million.
One of the reasons for the revenue forecast raise is the strength of Valeant’s Bausch and Lomb arm, which focuses on eye health products—and is the inspiration for a company name change announced by CEO Joseph Papa on Tuesday. Beginning in July, Valeant will be renamed Bausch Health Companies and change its stock ticker to “BHC.”
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“It became clear that Bausch Health Companies best represents the company we are today,” said Papa in a statement.
The move, though symbolic, is likely a part of Papa’s efforts to rehabilitate Valeant’s scandal-plagued image as he also attempts to steer the company back to profitability (and tackle the gigantic debt burden undertaken by the drug maker). Valeant has dealt with accusations of price gouging, fraud, and using shell pharmacies to house inventory without hitting the bottom line.
It may take a while for investors to return to the flock long-term, though. Valeant stock is still down more than 30% over the past two years.