Witness Protection is Working for Valeant...So Far

After a rough couple of years both technically and as far as the news flow was concerned, Valeant Pharmaceuticals International changed its name to Bausch Health (BHC) earlier this year. While there are a myriad of reasons you will hear from upper management as to the exact reasons for the name change, we know the subtext of this type of move amounts to an attempt at a metamorphosis of sorts.

But mostly it is the stock market equivalent of the witness protection program--A fresh start in the hopes of a truly clean slate where a firm may escape its past. 

Indeed, BHC has performed rather well since going into witness protection, gapping up 14% today on new of a patent settlement after reducing its debt, too. 

With this in mind, another controversial large cap pharma which also had a rough couple of years technically but is now turning the corner looks to be Horizon, below on the daily timeframe looking mighty clean and bullish. 

Interestingly, both BHC (when it was VRX) and HZNP had similar run-ups and crashes back in 2015. Thus, looking at them in tandem makes sense as healthcare is enjoying a late-summer revival. As we head into autumn I am looking to see if they can continue their long-term turnaround and offer up a long trade.