Valeant files annual report, says it will change strategy

Valeant

(NYSE:VRX) is possibly in the clear from a default on its $30 billion debt.

Beleaguered Canadian drugmaker Valeant Pharmaceuticals International Inc filed its long-delayed annual report on Friday, in which it identified misstatements that would reduce some of its previously reported revenue.

The financial reports resolve just one of Valeant's troubles, which include having several executives grilled by Congress Wednesday on Valeant's strategy of jacking up prices of medicines many times prior levels. Both Democratic and Republican presidential candidates have blasted Valeant's strategy and vowed to rein in pharmaceutical companies.

Ackman, who was appointed to Valeant's board in March, will appear on Scott Wapner's CNBC show, Cramer said.

Papa was picked on Monday to replace outgoing CEO Michael Pearson who had steered the company into a heap of scrutiny and criticisms over its accounting and drug-pricing policies. The management change was part of a broader overhaul that included adding activist investor Bill Ackman to the board.

In addition, the Company announced that the Company's Board of Directors had determined to dissolve the AHC and that the 12 independent directors on the Board, including the members of the Audit and Risk Committee, would assume oversight responsibility for remaining work, including work associated with the completion of the Company's current and restated financial statements and disclosures, as well as its assessment of related internal controls and remediation matters.

Valeant files annual report, says it will change strategy
Valeant files annual report, says it will change strategy

Valeant executives have constrained future growth by pledging an end to the exorbitant drug price hikes that helped drive its share price from $35 in October 2011 to almost $264 last August. The company said the investigations also focus on financial support provided by Valeant for patients, its distribution of products and information provided to the Centers for Medicare and Medicaid Services. It reduced by about $5 million sales of antibiotic Xifaxan, due to estimated returns by wholesalers.

Valeant's corrected 2015 financial report states that it had a net loss of $287.8 million, versus net income of $879.4 million in 2014.

Those changes echo the earlier misstatements that led to government probes and Valeant establishing a temporary committee to review its financial reports and accounting practices.

The restatement lowered revenue for the first quarter of 2015 by about $21 million, but increased net income attributable by about $24 million and earnings per share by 7 cents.

Valeant disclosed months ago that it improperly reported about $58 million in revenue late in 2014, by recording sales when medicines were delivered to its former partner, now-defunct mail-order pharmacy Philidor, rather than when patients received those medicines. Mr. Schiller's total compensation dropped to $606,805 from $27.1 million a year earlier, as hie was given no stock awards for 2015 compared with $23.7 million in 2014.

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