REFILE-UPDATE 3-Valeant annual report reveals new issues, company overhauls board

Fri Apr 29, 2016 12:16pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Refiles to clarify that board changes were announced separately from annual report)

By Caroline Humer

April 29 (Reuters) - Valeant Pharmaceuticals International Inc on Friday issued a 2015 financial report that met an important deadline for creditors, revealing new details on a range of financial and legal issues, and it also announced changes to its board.

Shares in Valeant fell 4.0 percent to $33.81 in midday trading in New York on Friday and are well down from their all time high of $263.70 in August.

The company has been facing scrutiny from the U.S. Congress, prosecutors, and regulators over its drug pricing, business practices and accounting practices.

Valeant's relationship with Philidor RX Services, which has been distributing its drugs, was terminated last year, hurting Valeant sales.

The publication of the report satisfies demands from Valeant's creditors, but also shows the difficult road ahead for the drugmaker, Wall Street analysts and investors said.

"We think investors should sell on this catalyst since the business is quite weak and faces a number of headwinds," Mizuho Securities analyst Irina Koffler said in a research note.

The annual report does not answer some more basic questions about what strategy Valeant will adopt, said David Neuhauser, managing director of Livermore Partners, which is short Valeant.   Continued...