Valeant Will Make Deadline and Shareholders Can Exhale

Valeant Pharmaceuticals (VRX) shareholders breathed a sigh of relief Monday morning, after the beleaguered Candian drugmaker reported it plans to timely file its first-quarter SEC filing, on or before June 10.

The update may seem to be standard procedure among most major corporations, but Valeant shares spiked more than 5% in premarket trading off the news. Investors took comfort that Valeant's quarterly filing is not likely to resemble the same drawn-out process the company faced in filing its annual 10-K.

Due to an SEC investigation into Valeant's bookkeeping, the drugmaker had had to delay its annual filing in February, prompting a standoff with creditors after debt covenants were breached on Valeant's more than $20 billion in debt. It ultimately filed its 10-K in late April, after a new management team was named.

And the newly appointed executives -- with CEO Michael Pearson now at the helm, as well as a host of fresh faces at the board table -- have stated that refurbishing Valean'ts accounting integrity and image is a top priority.

Billionaire activist Bill Ackman, whose Pershing Square hedge fund holds a 9% stake in the drugmaker, was among those appointed to the board, as well as Pershing's vice-chairman Stephen Fraidin.

Concerns over Valeant's accounting first arose last fall, after the SEC found dubious revenue tied to Valeant's former partnership with mail-order pharmacy Philidor. (Valeant has since admitted to $58 million in improperly booked sales tied to Philidor.)

Valeant shares are down more than 70% so far on the year.