NEW YORK (TheStreet) -- Valeant Pharmaceuticals Int'l. (VRX) stock is retreating 7.33% to $74.74 in early morning trading on Monday after the company said it will reschedule the release of its 2015 fourth quarter financial report following the return of CEO J. Michael Pearson.
The quarterly report was scheduled to be released before today's market open.
On Sunday, the Canadian pharmaceutical company announced Pearson would resume his position, effective immediately, after being on medical leave since December due to severe pneumonia.
"My immediate priority will be to build stronger relationships with important constituents, such as managed care and other channel partners, regulators and government representatives, while improving Valeant's reporting procedures, internal controls and transparency," Pearson said in a statement.
Valeant also appointed interim chairman Robert Ingram as chairman of the board to separate the roles of chairman and CEO.
Separating these positions "demonstrates the board's commitment to sound governance and view it as a meaningful gesture to shareholders, which could further bolster Valeant's credibility within the financial community," Nomura analysts wrote in a note this morning.
Additionally, Valeant withdrew its financial guidance for the 2015 fourth quarter and 2016 full year. The company plans to provide updated guidance and preliminary fourth quarter results soon, but did not set a specific date.
The company had set its earnings guidance at $2.55 to $2.65 per share and revenue outlook at $2.7 billion to $2.8 billion for the 2015 fourth quarter.
For 2016, the company was expecting earnings of $13.25 to $13.75 per share on revenue of $12.5 billion to $12.7 billion.
Valeant has been conducting a review of its accounting practices since October because of concerns related to the company's former distribution partnership with Philidor, according to James Passeri at Real Money.
Separately, Valeant has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as robust revenue growth, good cash flow from operations and expanding profit margins, and its weaknesses, including disappointing stock performance, unimpressive growth in net income and generally higher debt management risk.
You can view the full analysis from the report here: VRX
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