Valeant Pharmaceuticals International (VRX) Stock Price Surges After Accounting Review Finds No New Problems


U.S.-listed shares of embattled drugmaker Valeant Pharmaceuticals International Inc. (NYSWE:VRX) surged 16 percent to $30.27 early Tuesday after the company said a board committee had completed a review of its accounting practices and had not found any new items that would require additional restatements.

Valeant said last month that a board committee probing the company’s ties to specialty drug distributor Philidor Rx had found accounting problems dating back to December 2014.

The drugmaker said Tuesday it was on schedule to file its annual report on or before April 29 and that it would be in compliance with all financial covenants in its credit facility at the end of each affected quarterly period.

The company said last week it had asked its lenders for another month to file its annual report, seeking to reduce the risk of a default on its $30 billion debt if it missed the April 29 deadline.

Valeant was originally due to file its annual report by March 15 but said in February that it would not meet that deadline as a result of the review, which started in late 2015.

[source :-ibtimes]