Valeant Pharmaceuticals International Inc, which has 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 put it at risk of a default on its $30 billion debt. Recent years months for the troubled Canadian drugmaker have also place a question mark over its overall strategy of rapid acquisition-driven expansion and aggressive price hikes.
Following is really a review of key events in Valeant’s history:
December 2007: Biovail Corp of Canada, Valeant’s predecessor, pays $138 million to settle a shareholder lawsuit accusing it of creating 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 it’s 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 making a number 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 New Jersey-based maker of ophthalmology products, for $318 million.
September 2010: Valeant is acquired by Biovail inside a reverse merger. Pearson becomes CEO from the combined company by having an annual revenue of $1.75 billion. It requires Valeant’s name and is incorporated in Canada, where Valeant predicts to have a 10-15 per cent tax rate, far underneath the U.S. levels.
2011: Valeant settles a civil lawsuit brought by 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 about $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 for 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 compete with Allergan Inc’s market-leading portfolio.
April 2013: Valeant offers more than $13 billion in stock for smaller U.S. rival Actavis Inc, but merger talks collapse.
August 2013: In the biggest deal ever, Valeant buys eye-care company Bausch & Lomb from private equity firm Warburg Pincus for $8.6 billion.
January 2014: After making the list of world’s top 15 drugmakers by market capitalization, Pearson tells analysts Valeant aims to crack the top five after 2016.
March 2014: Jim Grant, editor of the investment journal, criticizes Valeant because of its lack of concern for research and development.
April 2014: Valeant and activist investor William Ackman’s Pershing Square Capital Management hedge fund get together to buy Allergan.
May 2014: Bronte Capital’s John Hempton says his fund is shorting Valeant, calling its accounts “hard to comprehend”. James Chanos, founding father 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 them with a $66 billion offer.
March 2015: Pershing Square discloses it’s taken a 5 per cent stake in Valeant.
April 2015: Valeant completes its $11 billion acquisition of Salix Pharmaceuticals, a maker of gastrointestinal medicines.
June 2015: Long-time investor ValueAct Capital Management says it sold 4.2 million Valeant shares, but retains a stake worth over $3 billion.
Sept 28, 2015: Democratic members of a Congressional committee urge their chairman to subpoena Valeant over “massive” price increases for 2 of its heart drugs.
Oct 15, 2015: Valeant says it’s been subpoenaed by U.S. prosecutors seeking details on its patient assistance programs, drug pricing and distribution practices.
Oct 19, 2015: Ny Times reports how Valeant has used its ties with a specialty pharmacy Philidor to market conventional medications, averting health insurer barriers to reimbursement.
In a conference call later that day, Valeant discloses for the first time it has used Philidor’s services, has an choice to purchase the pharmacy and it has already incorporated its financials into its very own results.
Oct 21, 2015: Valeant shares plunge as much as 40 percent after an influential short-seller, Citron Research, accuses the company of using specialty pharmacies, including Philidor, to inflate its revenue. Valeant categorically denies the allegations.
Oct 26, 2015: Valeant holds investor call to protect itself against Citron’s allegations and sets up an ad-hoc committee to study them in depth.. Valeant shares end 5.3 per cent down.
Oct 30, 2015: Valeant cuts ties with specialty pharmacy distributor, Philidor, charged with helping it inflate revenue. Philidor has since gone bankrupt. Valeant later warned its dermatology business could be hurt in 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 if this cut ties with pharmacy Philidor Rx Services, but it could contain the damage in 2016 and grow profit.
Dec 28, 2015: Valeant appoints group of company executives to consider over duties of their Chief Executive Michael Pearson until he returns from medical leave.
Jan 6, 2016: The organization appoints its former CFO Howard Schiller as interim CEO.
Jan 28, 2016: Campaign of Democratic presidential contender Hillary Clinton posts your blog detailing exorbitant price hikes for any migraine drug made by Valeant.
Feb 4, 2016: In 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 results for 2014 and 2015 after identifying some sales of Philidor that should have been recognized when products were dispensed to patients.
Feb 29, 2016: Valeant discloses that it was under investigation through the U.S. Securities and Exchange Commission a day after announcing the return of CEO Pearson from medical leave and withdrawing 2016 guidance.
March 7, 2016: Valeant says it would release preliminary quarterly results and assistance with March 15, bi weekly after it was originally scheduled to be sold.
Mar 9, 2016: The company adds a representative from shareholder Pershing Square Capital Management to the board in addition to two other new directors.
Mar 10, 2016: A U.S. congressional committee urges Valeant to describe why it had been withholding documents related to a study into steep hikes in prices of two company’s heart drugs.
Mar 15, 2016: Valeant cuts 2016 revenue forecast by about 12 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