Valeant Pharmaceuticals International Inc. (NYSE: VRX) stock tumbled again on Tuesday after the company issued lower-than expected guidance and outlined potential debt default in the future.
The shares dropped as much as 44 percent to $38.21 on Tuesday morning in Nasdaq trading, the lowest level since 2012. The company had lost more than 70 percent of its market value since its $262.52 high last year.
Valeant posted a new 2016 outlook that was lower than predictions it provided in December. The company said that the total revenue for the year would be $11 billion to $11.2 billion, below the previous guidance of $12.5 billion to $12.7 billion. The adjusted earning will be $5.6 billion to $5.8 billion, or $9.50 a share to $10.50 a share, also below the company’s earlier guidance.
“We have to earn back the credibility. We have to deliver on results. We have to meet or exceed this guidance,” Pearson during the call. “It’s a bit of a starting over point for me and this company.”
Valeant pulled its financial guidance and delayed reporting fourth-quarter results. The company posted fourth-quarter adjusted earnings per share of $2.50. Revenue for the quarter was $2.79 billion. The company said the result might not compare with analyst estimates or prior quarters because it will restate its gastrointestinal business related to Philidor Rx Services LLC.
Valeant also warned that holders of at least 25 percent of notes might deliver a notice of default. The company had about more than $30 billion debt and committed to repay at least $1.7 billion this year, down from an earlier forecast of $2.25 billion.
“Our business is not operating on all cylinders, but we are committed to getting it back on track," said Pearson.