Valeant Completes Internal Review of Mail-Order Pharmacy and Sees No Further Issues

Valeant Pharmaceuticals International, Inc. reports that the ad hoc committee of the board of directors believes that its review of its mail-order pharmacy, Philidor, and related accounting matters is complete, and that it has not identified any additional items that would require restatements beyond those required by matters previously disclosed.

As a result, Valeant’s board has determined to dissolve the ad hoc committee and that the 12 independent directors on Valeant’s board, including the members of the board’s Audit and Risk Committee, will assume oversight responsibility for remaining work associated with the completion of the company’s current and restated financial statements and disclosures, as well as its assessment of related internal controls and remediation matters. As previously disclosed, the company intends to file its Form 10-K on or before April 29, 2016.

Robert Ingram, chairman of the board and chair of the Ad Hoc Committee said in a company statement:”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.”

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 year ended December 31, 2015, which the company intends to file with the US Securities and Exchange Commission and the Canadian Securities Regulators on or before April 29, 2016. The company believes that after giving effect to the restatement, it will have remained in compliance with all of the financial maintenance covenants in its credit facility at the end of each affected quarterly period.

Source: Valeant Pharmaceuticals

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