Valeant Pharmaceuticals International Inc, that’s been under scrutiny over its pricing and accounting practices, cut its 2016 sales and earnings forecast on Monday, and said a delay in filing its annual report place it susceptible to a default on its $30 billion debt. The past few years months for the troubled Canadian drugmaker also provide place an issue mark over its overall approach to rapid acquisition-driven expansion and aggressive price hikes.
Following can be a overview of goals in Valeant’s history:
December 2007: Biovail Corp of Canada, Valeant’s predecessor, pays $138 million to stay a shareholder lawsuit accusing it of making false statements to inflate its stock price.
February 2008: California-based Valeant Pharmaceuticals International names McKinsey & Co veteran and pharmaceutical acquisitions expert Michael Pearson since its CEO. It buys Coria Laboratories for $95 million and Australia’s DermaTech for $12.Six million that year.
March 2008: The U.S. Filing charges Biovail Corp, its former CEO, and three other senior executives with fraudulent accounting and developing a quantity of misstatements to analysts and investors.
January 2009: Valeant buys Dow Pharmaceutical Sciences Inc, a maker of topical dermatology products, for $285 million and buys Mexican generic drugmaker Tecnofarma.
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May 2010: Valeant buys Aton Pharmaceuticals, a fresh Jersey-based maker of ophthalmology products, for $318 million.
September 2010: Valeant is acquired by Biovail inside a reverse merger. Pearson becomes CEO within the combined company having an annual revenue of $1.75 billion. It requires Valeant’s name and is incorporated in Canada, where Valeant predicts to experience a 10-15 percent tax rate, far below the U.S. levels.
2011: Valeant settles a civil lawsuit through the SEC accusing Biovail of accounting fraud. It boosts its presence in Central and Eastern Europe by snapping up Switzerland-based generic company PharmaSwiss for $481 million; AB Sanitas of Lithuania for around $500 million; Canada’s Afexa Life Sciences and Sanofi SA’s dermatology unit Dermik. However, its $5.7 billion unsolicited bid for U.S. biotech Cephalon loses to have an almost $7 billion offer from Israeli drugmaker Teva Pharmaceutical Industries.
2012: Valeant buys Medicis Pharmaceutical Corp for $2.6 billion, acquiring anti-wrinkle medicines and facial fillers that contend with Allergan Inc’s market-leading portfolio.
April 2013: Valeant provides more than $13 billion designed for smaller U.S. rival Actavis Inc, but merger talks collapse.
August 2013: Within the biggest deal ever, Valeant buys eye-care company Bausch & Lomb from private equity finance firm Warburg Pincus for $8.6 billion.
January 2014: After creating this report on world’s top 15 drugmakers by market capitalization, Pearson tells analysts Valeant aims to compromise the top 5 after 2016.
March 2014: Jim Grant, editor from the investment journal, criticizes Valeant due to its insufficient concern for research and development.
April 2014: Valeant and activist investor William Ackman’s Pershing Square Capital Management hedge fund get together to purchase Allergan.
May 2014: Bronte Capital’s John Hempton says his fund is shorting Valeant, calling its accounts “difficult to comprehend”. James Chanos, founder of Kynikos Associates and short on Valeant accuses it of “aggressive accounting games”.
June 2014: Allergan, battling off Valeant’s takeover attempt, releases email exchanges with Morgan Stanley in which the bank called Valeant a “house of cards.”
Nov 2014: Valeant and Ackman end their pursuit for Allergan after rival Actavis outbids all of them a $66 billion offer.
March 2015: Pershing Square discloses it’s taken a Five percent stake in Valeant.
April 2015: Valeant completes its $11 billion purchase of Salix Pharmaceuticals, a maker of gastrointestinal medicines.
June 2015: Long-time investor ValueAct Capital Management says it sold 4.Two million Valeant shares, but retains a stake worth over $3 billion.
Sept 28, 2015: Democratic individuals a Congressional committee urge their chairman to subpoena Valeant over “massive” price increases for just two from the heart drugs.
Oct 15, 2015: Valeant says it’s been subpoenaed by U.S. prosecutors seeking information on its patient assistance programs, drug pricing and distribution practices.
Oct 19, 2015: Ny Times reports how Valeant provides its ties having a specialty pharmacy Philidor to promote conventional medications, averting health insurer barriers to reimbursement.
In a celebration call afterwards tomorrow, Valeant discloses the first time it has utilized Philidor’s services, comes with a option to purchase the pharmacy and contains already incorporated its financials into its results.
Oct 21, 2015: Valeant shares plunge around 40 percent after an essential short-seller, Citron Research, accuses the organization of employing specialty pharmacies, including Philidor, to inflate its revenue. Valeant categorically denies the allegations.
Oct 26, 2015: Valeant holds investor call to safeguard itself against Citron’s allegations and creates an ad-hoc committee to look at them thorough.. Valeant shares end 5.Three percent down.
Oct 30, 2015: Valeant cuts ties with specialty pharmacy distributor, Philidor, confronted with helping it inflate revenue. Philidor has since gone bankrupt. Valeant later warned its dermatology business may be hurt for the short term.
Dec 15, 2015: Valeant inks an offer to distribute its drugs through pharmacy chain Walgreens Boots Alliance Inc.
Dec 16, 2015: The Canadian drugmaker says its Q4 profit was hit when it cut ties with pharmacy Philidor Rx Services, nevertheless it could offer the damage in 2016 and grow profit.
Dec 28, 2015: Valeant appoints quantity of company executives to think about over duties from the Leader Michael Pearson until he returns from medical leave.
Jan 6, 2016: The company appoints its former CFO Howard Schiller as interim CEO.
Jan 28, 2016: Campaign of Democratic presidential contender Hillary Clinton posts your site detailing exorbitant price hikes for just about any migraine drug made by Valeant.
Feb 4, 2016: Inside a U.S. congressional hearing interim CEO Howard Schiller puts forward a conciliatory face, testifying that his company had changed its business and pricing tactics.
Feb 22, 2016: Valeant says it might restate its financial recent results for 2014 and 2015 after identifying some sales of Philidor that ought to are in fact recognized when products were dispensed to patients.
Feb 29, 2016: Valeant discloses it’s under investigation while using U.S. Filing every day after announcing the return of CEO Pearson from medical leave and withdrawing 2016 guidance.
March 7, 2016: Valeant says it might release preliminary quarterly results and help with March 15, bi weekly after it had been originally scheduled to become removed.
Mar 9, 2016: The company adds a realtor from shareholder Pershing Square Capital Management towards the board along with two other new directors.
Mar 10, 2016: A U.S. congressional committee urges Valeant to describe why it had been withholding documents of the study into steep hikes in prices of two company’s heart drugs.
Mar 15, 2016: Valeant cuts 2016 revenue forecast by about Twelve percent and says a delay in filing its annual report could mean a debt default, causing its shares to plunge.
Compiled with files from Reuters, Valeant press statements
