The rating agency Standard and Poor’s downgraded the note Friday Canadian drugmaker Valeant “B +” to “BB-” after he announced his break with the Philidor drug dealer. Valeant, which is also the target of accusations of accounting malpractice, saw its rating with a negative outlook which implies that it could still be lowered soon
S & amp;. P believes, in support of its decision, that “the accusations of embezzlement against Philidor weaken the credibility of the management of Valeant, yet further harm to the already tarnished reputation of the company and these developments reinforce the legal, regulatory risks” to Valeant. “We also believe that these problems could compromise the ability of the company to market its products to physicians,” says S & amp;. P
The negative outlook addresses concerns that affect the ability to Valeant in overcome the current difficulties even if the agency believes the company now has the means to cope with these difficulties.
Valeant action again lost nearly 16% Friday on the Stock Exchange of New York after the announcement of the break with Philidor.
Sales of products through Valeant Philidor were recorded when these drugs were still in stock, according to the revelations of October 26 Citron Research hedge fund that promised new “revelations” for Monday. The stock has lost nearly two-thirds of its value since mid-September.
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