NEW YORK, Nov 8 (IFR) - High-yield bonds of Valeant Pharmaceuticals fell in heavy trading Tuesday after the company cut guidance for the year and warned that 2017 could be even more challenging.
Valeant’s bonds were among the heaviest traded US dollar junk bonds, according to MarketAxess data.
Its 6.125% 2025s fell almost 2 points to a cash price of 77, while its 6.375% 2020s dropped 1.3 points to 87.75 and its 5.875% 2023s lost almost three points to 76, according to MarketAxess.
The company’s US-listed stock had tumbled more than 20% shortly before midday.
Valeant said Tuesday some of its products could face new competition.
Nitropress and Isuprel are among Valeant’s neurology drugs that lose market exclusivity by next year, and there is also likely to be a “material” drop-off in its generics business, said Chief Financial Officer Paul Herendeen, who started work in September.
Valeant bonds had rallied last week on hopes proceeds from a potential sale of its Salix stomach-drug unit would help lower the US$30bn debt load the company has accumulated over the years to pursue ambitious acquisitions. (Reporting by Natalie Harrison; Editing by Marc Carnegie)