NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) stock is falling by 0.26% to $27 in afternoon trading on Thursday, as the company risks not fulfilling obligations with the SEC and NYSE even if it receives a waiver from its bank lenders to extend the filing deadline for its outstanding reports.
The pharmaceutical company is asking banks whether it can postpone filing its 10-K annual report until May 29 and 10-Q for the 2016 first quarter until July 31.
However, it's unclear who will sign the required Sarbanes-Oxley internal control and disclosure certifications as CEO and whether the reports will be prepared soon enough to meet the company's reporting obligations to the SEC and NYSE, according to MarketWatch.
As part of the certification, the CEO must disclose any material weaknesses in internal controls and certify that disclosures were otherwise compliant with SEC regulations, MarketWatch reports.
Valeant CEO Mike Pearson has announced that he is leaving the company, but will continue to lead until a replacement is chosen. Pearson will consequently sign off on the annual and quarterly reports if a replacement is not found when Valeant ultimately files them.
Valeant has admitted that "the tone at the top of the organization" could have resulted in "improper revenue recognition," which implies improper management conduct, MarketWatch adds.
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 and expanding profit margins are countered by weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
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.