NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) stock is rising 3.95% to $68.76 in afternoon trading on Friday after CEO Michael Pearson told senior managers that the company is not going to go bankrupt, Bloomberg reports.
"There is no other big shoe to drop that I am aware of," Pearson reportedly told attendees at the March 2 meeting. "To the best of my knowledge we are not sitting on any other big issues."
The pharmaceutical company will not reduce its debt load by selling its Bausch & Lomb vision-care business, as billionaire investor Bill Ackman's Pershing Square Capital Management has suggested, Bloomberg adds.
Pearson recently returned to work from a two-month medical leave, and hasn't spoken publicly since his return.
Shares have fallen 18% since Pearson began work again, as the company contends with an investigation by the SEC, and an internal probe into the company's accounting practices and former relationship with specialty pharmacy Philidor.
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.