NEW YORK (TheStreet) --Shares of Valeant Pharmaceuticals (VRX) are tumbling by 22.22% to $14.88 in mid-day trading on Tuesday, as the drug and medical device making company posted weaker than expected third quarter results. The company also slashed its full year EPS forecast.

The company posted non-GAAP earnings of $1.55 per share on revenue of $2.48 billion for the quarter, missing the $1.75 per share on $2.5 billion in revenue that analysts had been expecting.

Wells Fargo analyst David Maris appeared on this afternoon's "Power Lunch" on CNBC to discuss the Valeant story and how it may end. Maris has a "sell" rating on the stock.

"Well I don't know [how the story will end] because it's a big mystery," Maris said. "The company spent in the last couple of years, $15 billion on acquisitions, but operating cash flow is down. So if you gave me $15 billion and said buy some good stuff I'd be able to find some things."

Valeant has about $30 billion worth of debt, plus another $10 billion owed to other obligations. Wells Fargo spent some time with Valeant's management today urging them to restructure, while the company believes it just needs to refinance.

"Those things sound similar but they're very different," Maris said. "But refinancing after results like today is going to cost them a lot."

CNBC's Melissa Lee asked Maris when the clock will "start ticking" for Valeant to refinance that debt.

"Well the clock is ticking now, but the big maturities happen in 2018, 2019, 2020, so they have a little bit of time. So they're going to sell some assets, payoff the near term debt. But one of the things I think they were planning to do is refinance the near term debt," Maris said.

Wells Fargo urges caution when thinking about the stock. The instinct might be to throw money at it since it is down off of its high, but Maris says this is not the way to approach things. He believes it is best to proceed with caution because if just one or two things go against the company it could "get ugly fast."

Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:

We rate VALEANT PHARMACEUTICALS INTL as a Sell with a ratings score of D. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: VRX

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