Valeant's annual report is finally out

After months of delays, a Senate hearing, and a precipitous stock fall, Valeant Pharmaceuticals finally filed their annual 10-k report to the SEC Friday morning.

The document has been delayed multiple times as the company reviewed financial documents related to a specialty pharmacy, Philidor, associated with the company.

According to the 10k, the relationship with Philidor misstated $58 million in revenues and $33 million in profit during fiscal year 2014. Additionally, the company misstated revenue in the first quarter of 2015, which reduces revenue by $21 million but actually increases profits by $24 million.

Additionally, the ad hoc committe found "material weaknesses" in the financial reporting of the company, starting at the top and the culutre of the company. From the 10k:

These material weaknesses relate to the tone at the top of the organization and the accounting and disclosure for non-standard revenue transactions particularly at or near quarter ends. The improper conduct of the Company's former Chief Financial Officer and former Corporate Controller, which resulted in the provision of incorrect information to the ARC and the Company's independent registered public accounting firm, contributed to the misstatement of financial results. In addition, as part of this assessment of internal control over financial reporting, the Company has determined that the tone at the top of the organization, with its performance-based environment, in which challenging targets were set and achieving those targets was a key performance expectation, may have been a contributing factor resulting in the Company's improper revenue recognition and the conduct described above.

The company originally delayed the filing on March 21, stating they had created an ad hoc committee to review Valeant's financial statements.

The committee then announced they had completed their review on April 5.

This has been a tumultuous year for Valeant, which has had to deal with the scandal involving Philidor but also government pressure on its practice of purchasing drugs and raising the price. All told the stock has fallen from around $214 a share a year ago to $35.22 as of close Thursday.

More to come...