Valeant Pharmaceuticals announced this morning that, after a complete review of the relationship between the company and its specialty pharmacy Philidor by its special purpose committee, there would be no further financial restatements required beyond those already disclosed.
The company said that they would be filing its 10-k (annual report) on or before April 29, 2016.
Most importantly, Valeant said that they company believes that it will remain in compliance with all of its credit/debt covenants going forward.
If true, that is a huge issue resolved and the shares of Valeant could be way overcooked down here.
Robert Ingram, chairman of the board and chair of the Ad Hoc Committee stated, "We appreciate the efforts of the Ad Hoc Committee and its independent advisors over the past five months. After conducting more than 70 interviews and reviewing over one million documents, the Ad Hoc Committee has not identified any additional items requiring restatements beyond those matters previously disclosed. We believe it is appropriate to transfer responsibility for any continuing work to the Board's independent directors. We continue to work diligently and are on schedule to file our Form 10-K on or before April 29, 2016."
Shares of Valeant Pharmaceuticals are up over 17% on just under 4 million shares in pre-market activity.
Lots of food for thought this morning and not just for those long or short Valeant Pharmaceuticals but with the overall markets as well.
Tax inversion rulings, oil getting beat up again, weak economic data from Europe and Asia, IMF warning on economic growth, Federal Reserve officials continuing to mouth off, and so much other stuff to deal with this morning.
A mouthful indeed.