Valeant shares plummet 49% in the default alert, Outlook

Mar 15, 2016 | | Say something

Valeant shares plummet 49% in the default alert, Outlook ;

Canadian pharmaceutical price action Valeant plunged nearly 50 percent on Tuesday after he warned that he risked debt default and cut its profit forecast.

Shares plunged 49.5 percent to $ 34.86 in afternoon trading.

Valeant, already criticized for its practices of pricing and accounting, said in a statement to Tuesday that bondholders may submit a notice of default if the drug fails to submit its annual 10-K report to the Securities and Exchange Commission within 60 days.

The 10-K report was due Tuesday, but a presentation within 60 days “cure the default,” Valeant Pharmaceuticals said in the filing.

Valeant has delayed the 10-K report pending a review of its financial reporting and internal controls. In late February, Valeant confirmed that is the goal of “several” investigations by US authorities, including the SEC.

Related Post:   Novo Nordisk says US launched 'encouraging' as profit drops

Valeant also faces a potential default of its bank credit agreement not submitting the annual report on time, according to its SEC filing.

“The company is working diligently and intends to file Form 10-K as soon as reasonably possible,” Valeant said.

The default warning came on top of a preliminary report of a loss in the fourth quarter of $ 336.4 million and the much lower projections for 2016.

Valeant now expects between $ 11 and $ 11.2 billion in total revenues in 2016, compared to the previous forecast of $ 12.5 to $ 12.7 million.

also it reduced its 2016 earnings per share of between $ 9.50 expected and $ 10.50 from $ 13.25 to 13.75.

Chief executive Michael Pearson said the lower outlook reflects weaker growth in the US dermatology, gastrointestinal and portfolio health of women and the poor prospects for Western Europe.

Related Post:   5 Reasons you should consider getting a test of lung effort

“We intend to work hard to improve these figures,” Pearson said. “Meanwhile, we are comfortable with our liquidity position and current cash flow generation for the rest of the year, and we are well positioned to meet our obligations.”

activist investor Bill Ackman, whose Pershing Square hedge fund owns nine percent of Valeant, said the lower forecast “shocked” the market and default warning was also a source of anxiety.

“The above factors have caused investors to lose confidence in the company as it reflects the current 44 percent decrease in the price of the shares of Valeant,” Ackman said earlier today.

Ackman, who has lost an estimated $ 1 billion in Valeant so far in the day, said his company plans a “more proactive role” in the pharmaceutical, pointing to the appointment of Pershing vice president Steve Fraidlin Valeant to the table.

Related Post:   Naturally unclog arteries

“We continue to believe that the value of the underlying business franchises that make Valeant worth multiples of the current market price,” Ackman said.

“Reaching these values, however, will require restoring shareholder confidence in the management and governance of the company.”

This article was originally published on medicalxpress, Read the original article

visitor's tags
ethio telecom mail outlook  |  ethio mail outlook  |  intranet ethiotelecom et default aspx  |  ethio telecom outlook web app  |  ethio mail owa  |  mail ethiotelecom et email owa  |  ethio telecom outlook  |  
You may also like:

Posted in: Other

Leave a Reply

Your email address will not be published. Required fields are marked *

==[Click 2x to Close X]==
Most Popular Today!

Sorry. No data so far.