Valeant wasn’t able to file by the normal March 15 deadline because of a need to restate how it reported about US$58 million of revenue from Philidor Rx Services, an affiliated company that has since been shut down. Valeant Pharmaceuticals Intl Inc (TSE:VRX) has declined 86.59% since September 4, 2015 and is downtrending.
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Valeant was represented by interim CEO Howard Schiller, whom the company has since accused of “improper conduct” that contributed to a misstatement of the company’s financial statements. ON Wednesday, April 13, 2016, Pearson agreed to be deposed by a Senate committee investigating soaring prescription medicine prices. Valeant executives have been asked by both the U.S. Senate and House to testify for a series of congressional probes into how pharmaceutical companies price medications. “Since the company has previously repeatedly stated its intent to file the 10-K by the end of this month, we believe that it is highly unlikely that this notice would lead to an actual default”.
Valeant is facing three separate federal investigations into its business practices and its share price has fallen over 80% in the past year. Up to Friday, the shares had fallen almost 90 percent since hitting a record high of $263.81 in August.
Activist investor William Ackman, whose Pershing Square Capital Management L.P. hedge fund has a 9 percent stake in Valeant, has stated that a sale of some eye-care company assets could help Valeant raise cash to retire some of its debt.
Valeant’s stock is down around 6% in after-market trading.
The Senate Aging Committee announced that it had postponed the meeting, scheduled for Wednesday, as long as Pearson shows up to give the deposition on April 18. Valeant’s board directed him to comply with the subpoena.
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Pearson has also been subpoenaed to appear for a hearing before the full committee on April 27. The drug maker will review the letter from Mr. Cummings and continue co-operating with the committee, spokeswoman Laurie Little said in an e-mail. Susan Collins, and ranking member Sen. Forward-looking Statements This press release may contain forward-looking statements, including, but not limited to, statements regarding the timing with respect to the filing of the Company’s Form 10-K for the fiscal year ended December 31, 2015.
