Valeant still too far to accomplish secretarial resolution

Valeant still too far to accomplish secretarial resolution


TUESDAY: A press release issued by Valeant Pharmaceuticals Inc. (NYSE:VRX) stated that drug manufacturer believes to have accomplished its internal review of ‘various Philidor and related accounting matters’. However, the company still complies time before the matter behind them.

(*The fact it used the word ‘believe’ refers towards cautious conclusions)

The press release by the company incorporates:

  • Investigation progress
  • Potential re-statements
  • Improper conduct due to short-comings in technical infrastructure
  • Negotiating panel with lenders with regard to contracts
  • Final conclusion of additional accounting adjustment search

“After conducting more than 70 interviews and reviewing over 1 million documents, the committee has not identified any additional items requiring restatements beyond those matters previously disclosed.” –  Chairman of the board and Chair of the review committee, Robert Ingram

Apart from the above, the announcements still do not provide full reassurance to investors — the financial statements won’t contain any more surprises — unless Valeant actually files its 2015 10-K, and refiles its 2014 annual report with clear opinions from auditors PwC. The company intends to file its Form 10-K before 29th of the next month, but must re-state the quarterly financial statements from 2014-2015 affected by the adjustments it already announced and include those restated financial statements in the company’s 2015 10-K (source: Market Watch). Not to mention, it technically defaulted when it didn’t file its 10-K before March 15.

Upon reaching firm’s spokesperson, no comments had been made with regard to this.

INSIGHT: Valeant requested an extension and renegotiation of bank loan and debt covenants on 30 March 2016, saying that it would ask for amendments to the terms and more leeway — until May 29 — to file the affected financial information.

UPDATE: Firm’s eventual filings with the SEC must include an unqualified opinion from its auditor for 2014 and 2015 for it to remain in compliance with the New York Stock Exchange, SEC, as well as creditor’s requirements.

Exclusive data obtained from WSJ states Valeant shares to have hiked 4% at $29.66 during early TRADING.

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I cover technology, utilities and biotechnology for Markets Morning, and I help out occasionally with other industry sectors. I've written about investment and personal finance topics for more than 20 years from a lowly copywriter to editor-in-chief, so I've done a little bit of everything. For what it's worth, I have a BA from Duke University and an MBA from Rollins College. I'm married with one daughter, and that's worth more than everything else put together.