NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) stock is plummeting 16.19% to $67.71 in late-afternoon trading on Monday as the Securities and Exchange Commission conducts a previously undisclosed investigation into the company, Bloomberg reports.
The probe is separate from an existing investigation into Salix Pharmaceuticals, which Valeant acquired last year, sources told Bloomberg.
It's not yet certain what the most recent investigation is about.
Additionally, Valeant's board of directors is in the midst of its own internal investigation into the company's accounting practices and former relationship with specialty pharmacy Philidor.
Shares surged last week after the company announced that it would restate earnings as a result of the internal investigation, which is ongoing. Investors had hoped that Valeant's troubles might be coming to an end.
However, TheStreet's Jim Cramer pointed out on CNBC's "Squawk on the Street" last Tuesday that Valeant can't clear itself.
"They can't say, hey listen SEC, we looked it over and it's all good," Cramer said last week. "It doesn't work like that."
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Valeant's strengths such as its robust revenue growth, good cash flow from operations and expanding profit margins are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.
You can view the full analysis from the report here: VRX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.