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May 9, 2016

Valeant to file quarterly report by June 10, reiterates forecast

Valeant Pharmaceuticals head office

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Valeant Pharmaceuticals International Inc (VRX.TO) said on Monday it expected to file its first-quarter report with U.S. and Canadian regulators on or before June 10, ahead of a July 31 deadline, and reiterated its first-quarter forecasts.

Embattled Valeant filed its 2015 financial report last month, allaying concerns about a possible default on the company’s debt of more than $30-billion.

Valeant missed an original March 15 deadline to file its annual report, citing an in-house review of its accounting practices. The probe found problems dating back to 2014.

Valeant, whose U.S. shares were down 2.3 per cent in early trading, also said on Monday it expected filings for the second quarter ending June 30 and thereafter to be filed on time.

The Laval, Quebec-based company, which also reiterated its first-quarter revenue and adjusted earnings forecasts, is under scrutiny from the U.S. Congress, prosecutors and regulators over its drug pricing, business practices and accounting.

Valeant said in March that it expected its first-quarter revenue to be in the range of $2.3-billion (U.S.)-$2.4-billion and adjusted earnings of $1.30-$1.55 per share.

Analysts on average expect earnings of $1.36 per share and revenue of $2.36-billion, according to Thomson Reuters I/B/E/S.

The drug maker said last month that Joseph Papa, former chief executive of Perrigo Co Plc, would replace Michael Pearson as CEO.

Pearson’s frenzied dealmaking fuelled double-digit profit growth at Valeant until the disclosure last fall of its controversial relationship with a specialty drug distributor, and its strategy of sharply increasing drug prices drew criticism.

Valeant’s U.S. shares were trading at $29.00, a far cry from their August high of $263.70.

The company’s shares sank earlier this year after it said it would delay filing its 2015 financial report, opening the door to possible default on its debt.

The company’s Toronto-listed shares were down 1.7 per cent at $37.93 (Canadian).