UPDATE: Paradigm Capital Lowers PT to $67 on Valeant Pharmaceuticals on Raising Interest Cost

Paradigm Capital reiterated its Buy rating on Valeant Pharmaceuticals (NYSE: VRX) but lowered its price target from $70 to $67 ahead of the quarterly earnings release.

Paradigm Capital commented, "We continue to hold a positive view toward Valeant's unique approach to running a specialty pharmaceutical company, which we believe sets it apart from its peers. That said, the debt raised recently to pay for the Medicis acquisition leads to a material increase in interest payments, which dilutes the company's earnings power. We are lowering our price target to $67.00 (from $70.00) to account for these interest payments."

Valeant Pharmaceuticals closed at $54.62 on Tuesday.