Valeant Reiterates Quarterly Outlook, Sees Filing on Time

  • Drugmaker's shares fall 3 percent; bonds due in 2025 gain
  • Expects to file 10-Q by June 10, ahead of a July 31 deadline

Valeant Pharmaceuticals International Inc. reiterated its revenue and earnings estimates for the first quarter, saying it expects to submit its regulatory filing by June 10, ahead of a July 31 deadline in its debt agreement.

New Chief Executive Officer Joseph Papa, who took over this month, is working to reassure investors and stabilize the drugmaker after months of turmoil that included delaying financial reports because of earnings restatements.

Last month, Valeant won support from loan holders to make changes to its credit agreement, giving it the July 31 deadline to file first-quarter financials. However, the company didn’t extend the filing deadline under its agreements with bondholders. It faces a separate May 16 deadline to submit first-quarter results or risk breaching agreements with bondholders who own $19.5 billion of its debt, according to an April 29 regulatory filing.

Filings for the quarter ending June 30 and thereafter will be filed with the Securities and Exchange Commission and the Canadian Securities Regulators on time, the company said Monday in a statement.

The shares lost 4.8 percent to $28.47 at 1:04 p.m. in New York, while the reaction from creditors was mixed. Valeant’s most actively traded bond, $3.25 billion of 6.125 percent notes that mature in 2025, added 0.25 cent to trade at 80.25 cents on the dollar and yield 9.45 percent at 11:56 a.m. in New York, according to TRACE, the bond-price reporting system of the Financial Industry Regulatory Authority. 

Papa made his first move to reset the embattled company’s strategy last week, with the creation of a committee responsible for drug pricing.

The stock has lost more than 85 percent of its value since its August peak following controversies over the drugmaker’s business practices, accounting and price hikes.

Valeant filed its long-delayed 2015 annual report at the end of April, saying it would have no additional financial restatements. For the first quarter, Valeant said in March it expected earnings per share of $1.18 to $1.43, excluding some items, and revenue of as much as $2.4 billion.

Before it's here, it's on the Bloomberg Terminal.