Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced that it has received a notice of default from holders of its 5.5% Notes due 2023 as a result of the delay in the Company filing its Form 10-K for the fiscal year ended December 31, 2015. The Company discussed on its March 15, 2016 preliminary earnings call the possibility of receipt of such notice. Under its bond indentures, the Company has until June 11, 2016, 60 days from the receipt of the notice, to file its 10-K, which will cure the default in all respects. The Company is working diligently and is on schedule to file its 10-K on or before April 29, 2016. The notice of default does not result in the acceleration of any of the Company’s indebtedness.
As previously announced, the Ad Hoc Committee of the board of directors has completed its review of various Philidor and related accounting matters and has not identified any additional items that would require restatements beyond those required by matters previously disclosed. The Company is in the process of restating the affected financial statements, and the restated financial statements will be included in the Company’s Form 10-K for the fiscal year ended December 31, 2015, which the Company intends to file with the Securities and Exchange Commission and the Canadian Securities Regulators on or before April 29, 2016. (Original Source)
Shares of Valeant are down 3.5% to $30.84 in after-hours trading. VRX has a 1-year high of $263.81 and a 1-year low of $25.27. The stock’s 50-day moving average is $48.32 and its 200-day moving average is $92.45.
On the ratings front, Valeant has been the subject of a number of recent research reports. In a report released today, RBC analyst Douglas Miehm reiterated a Hold rating on VRX, with a price target of $65, which implies an upside of 103% from current levels. Separately, yesterday, Piper Jaffray’s David Amsellem reiterated a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Douglas Miehm and David Amsellem have a total average return of -11.7% and -8.0% respectively. Miehm has a success rate of 38.9% and is ranked #3404 out of 3787 analysts, while Amsellem has a success rate of 35.6% and is ranked #3582.
The street is mostly Neutral on VRX stock. Out of 21 analysts who cover the stock, 10 suggest a Hold rating , 7 suggest a Buy and 4 recommend to Sell the stock. The 12-month average price target assigned to the stock is $55.25, which represents a potential upside of 72.7% from where the stock is currently trading.
Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, eye health, neurology, and branded generics.