Valeant Pharmaceuticals International Inc (VRX.TO) (VRX.N) said on Monday it expected to file its first-quarter report with U.S. and Canadian regulators on or before June 10, ahead of a July 31 deadline, and reiterated its first-quarter forecasts.Embattled Valeant filed its 2015 financial report last month, allaying concerns about a possible default on the company’s debt of more than $30 billion.The company missed an original March 15 deadline to file its annual report, citing an in-house review of its accounting practices. The probe found problems dating back to 2014.Valeant, whose U.S. shares were down 3 percent in afternoon trading, also said on Monday it expected filings for the second quarter ending June 30 and thereafter to be filed on time.The Laval, Quebec-based company, which also reiterated its first-quarter revenue and adjusted earnings forecasts, is under scrutiny from the U.S. Congress, prosecutors and regulators over its drug pricing, business practices and accounting.Valeant said in March that it expected first-quarter adjusted earnings of $1.30-$1.55 per share and revenue to be in the range of $2.3 billion-$2.4 billion.
Analysts on average expect earnings of $1.36 per share and revenue of $2.36 billion, according to Thomson Reuters I/B/E/S. The drugmaker said last month that Joseph Papa, former chief executive of Perrigo Co Plc (PRGO.N), would replace Michael Pearson as CEO.Pearson’s frenzied dealmaking fueled double-digit profit growth at Valeant until the disclosure last fall of its controversial relationship with a specialty drug distributor, and its strategy of sharply increasing drug prices drew criticism.
Michael Sabia, chief executive of Canada’s second-largest pension fund manager on Monday called Valeant “a business built to satisfy the short-term impulses of equity managers in the public markets.”Sabia, CEO of Caisse de dépôt et placement du Québec, said the fund which oversees C$248 billion in assets, owned a small amount of Valeant stock which they sold “at the right time” before the price collapsed.”It is the poster child of what can happen when the focus of capital markets is on the short term,” Sabia said at the CFA Institute’s annual conference.
Valeant’s U.S. shares were trading at $28.99, a far cry from their August high of $263.70.The company’s shares sank earlier this year after it said it would delay filing its 2015 financial report, opening the door to possible default on its debt.The company’s Toronto-listed shares were down 2.4 percent at C$37.65. (Reporting by Ankur Banerjee in Bengaluru and Allison Lampert in Montreal; Editing by Ted Kerr and Shounak Dasgupta)Download