Mizuhoa analyst Irina Koffler said Valeant fundamentals remain weak and she expects revenue will continue to decline as the company divests assets. She thinks management will continue to guide down 2017 results, noting that Valeant said it stands to lose 19% of its 2016 revenues to generic competition in the 2017-2021 period, that it faces worsening gross-to-net discounts and that its pipeline may be insufficient to fill in the gaps.

The analyst, who is modeling a “wind-down” in operating expenses, keeps an Underperform rating and $9 price target on Valeant shares, but noted that she had to lower her longer-term investment assumptions to keep valuation at this level.