MONTREAL -- Valeant Pharmaceuticals says it has secured a cease-trading order from Quebec's securities watchdog that prevents directors and some senior officers from trading shares of the embattled pharmaceutical company.
The order granted Thursday by l'Autorite des marches financiers only applies to CEO Michael Pearson, the company's chief financial officer and all directors, including William Ackman of Pershing Square Capital.
The order, which doesn't affect anyone else, is to remain in place pending the company's filing of audited annual financial statements for 2015.
Valeant said in a statement that it has been working "diligently" on the issue and intends to make the required filings on or before April 29.
Despite its filing efforts, the Quebec-based company (TSX:VRX) has asked its lenders to give it until May 31 to file the report, known as Form 10-K.
Meanwhile, Moody's Investors Service downgraded some Valeant ratings, including its corporate family rating to B2 from B1, was due to the late filing, operational challenges, CEO and board changes, high debt and regulatory scrutiny.
Factors in Valeant's favour are a solid cash flow and unlikely near-term payment defaults barring debt acceleration arising from the late filing, Moody's said, adding that the company has a viable business with a low-cost structure, wide use of its products and good name recognition with Bausch and Lomb.
Valeant shares closed down $1.05 or 2.99 per cent at $34.05 Thursday on the Toronto Stock Exchange.
