TIMELINE-More trouble for Valeant as possible debt default looms
March 15 (Reuters) - Valeant Pharmaceuticals International Inc , which has been under scrutiny over its pricing and accounting practices, cut its 2016 sales and earnings forecast on Monday, and said a delay in filing its annual report put it in danger of a default on its $30 billion debt.
The past few months for the troubled Canadian drugmaker have also put a question mark over its overall strategy of rapid acquisition-driven expansion and aggressive price hikes.
Following is a summary of key events in Valeant's history:
December 2007: Biovail Corp of Canada, Valeant's predecessor, pays $138 million to settle a shareholder lawsuit accusing it of making false statements to inflate its stock price. February 2008: California-based Valeant Pharmaceuticals International names McKinsey & Co veteran and pharmaceutical acquisitions expert Michael Pearson as its CEO. It buys Coria Laboratories for $95 million and Australia's DermaTech for $12.6 million that year.
March 2008: The U.S. Securities and Exchange Commission charges Biovail Corp, its former CEO, and three other senior executives with fraudulent accounting and making a series of misstatements to analysts and investors. January 2009: Valeant buys Dow Pharmaceutical Sciences Inc, a maker of topical dermatology products, for $285 million and buys Mexican generic drugmaker Tecnofarma. May 2010: Valeant buys Aton Pharmaceuticals, a New Jersey-based maker of ophthalmology products, for $318 million.
Sept 2010: Valeant is acquired by Biovail in a reverse merger. Pearson becomes CEO of the combined company with an annual revenue of $1.75 billion. It takes Valeant's name and is incorporated in Canada, where Valeant predicts to have a 10-15 percent tax rate, far below the U.S. levels.
2011: Valeant settles a civil lawsuit brought by the SEC accusing Biovail of accounting fraud. It boosts its presence in Central and Eastern Europe by snapping up Switzerland-based generic company PharmaSwiss for $481 million; AB Sanitas of Lithuania for about $500 million; Canada's Afexa Life Sciences and Sanofi SA's dermatology unit Dermik. However, its $5.7 billion unsolicited bid for U.S. biotech Cephalon loses to an almost $7 billion offer from Israeli drugmaker Teva Pharmaceutical Industries.
2012: Valeant buys Medicis Pharmaceutical Corp for $2.6 billion, acquiring anti-wrinkle medicines and facial fillers that compete with Allergan Inc's market-leading portfolio. Continued...