Valeant has been given an extension to get its annual report squared away, pushing up its share price in premarket trading

 
Billy Bambrough
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Valeant's business model is being questioned by investors as the company struggles with accounting issues (Source: Getty)

Embattled Canadian drugmaker Valeant Pharmaceuticals has been given an extension by its lenders to push back its deadline for filing its annual report by an extra month.

Valeant's lenders have granted the company an amendment and waiver to its credit facility, allowing the company until 31 May to fill its annual report.

It's also been given an extension for getting in its report for the quarter ended 31 March will be extended to 31 July.

Read more: Last year the former the Valeant CEO said he felt good about 2016

Linda LaGorga, senior vice president and Valeant treasurer said:

We are pleased to have the support of our lenders and appreciate their confidence in the company's ability to execute our strategic plan.

Valeant has though reiterated its intention to file its annual report on or before 29 April.

"The company is comfortable with its current liquidity position and cash flow generation for the rest of the year, and remains well positioned to meet its obligations," Valeant said, repeating a statement it made last week.

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The news sent the company's shares up by around five per cent in premarket trading to $35.87. Earlier this week Valeant's stock hit fresh five year lows of $25.86 in intraday trading in New York.

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Valenat has been the subject of intense investor and media scrutiny since announcing in February it would miss its March deadline for filling its annual report due to a review of its accounting practices.

The review earlier this week found Valeant would not have to make any additional restatements.

Last month chief executive Michael Pearson announced he would stand down once a successor was found.

The firm has also named activist investor Bill Ackman, chief executive of Pershing Square Capital Management, to its board of directors.

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