is not valeant. we're a well diverse company, transparent with strength and to highlight a couple of facts. delivered a very strong quarter in fiscal 2016 which built on the momentum we saw in the fourth quarter and those sales were up 20%. we had strong volume across our specialty brands portfolio and earnings per share was up 17% and it represents less than a third of our business and is growing at 8% per year. we have a solid balance sheet and very strong cash flow and we actually raised earnings per share guidance for the year, so we've been delivering consistently and exciting shareholder expectations. we have a very strong solid business model, well diversified with excellent brands that we're investing in this driving value across the board. >> andrew, i encourage you guys to talk to each other. you're on the exact opposite ends here in terms of what you're seeing for the company. andrew, go ahead. >> first of all -- >> you could take that exact response and take the world "midday call-in"ckro

especially in valeant but i don't have a position in valeant. right now the stock is uninvestable. i wouldn't be short or long valeant. there's too much of a black box surrounding valeant right now. i would like to get more information. last time i was on your show i put a $50 price target. stock was trading 115 or 120. it's 66. pretty darn good. so right now i think it's best for me to step away. watch the regulators. watch the company. watch everyone else fight it out and i'll go as a short seller, someone who looks for truth in the markets, i'll go find a different story to expose. >> let's talk about the regulators because there was this news yesterday that the sec is now investigating valeant. a report from reuters was out saying that valeant asked the sec to conduct the investigation as a result of some of the allegations and issues that you raised at citron. so let me ask you first your reaction to that and if you, yourself have received any sort of subpoena from the sec as a result of the investigation they're doing. >> you know, as for, everything i wrote was transparent.

it's titled "valeant: the end." it needs to decide and explain what kind of company it will be when all that is done. anyone who thinks valeant can pursue anything like its old business model is dreaming. we've discussed the hedge funds that have suffered from this. the company suffered hugely in the short term. this particular piece says there's just as many questions to answer. >> meg terrell saying we have to watch early to mid-april because they have this deadline f for filing the annual report. they have to start paying back their debts. >> a lot of debt to pay back. >> absolutely. we're approaching the top of the hour. that means the team is getting ready for "squawk box." andrew joins us from new york with a look at what's coming up this morning. plenty to talk about between the political results, valeant, and of course it's fed day. >> you pretty much hit on the top three topics we're going to be discussing all morning. of course, the election is top of mind. we're going to talk about the brokered convention

that would be valeant. purging square out just within the past hour saying it will take a bigger role at valeant and believes the stock is unvalues. valeant enduring through its worst day in trading history, down 46%. losing $10 billion in

what do you actually see 12 months from now from valeant? >> we all need to have a crystal ball to see what will happen 12 months from now. right now the stock is not investable because there's enormous concerns about valeant's reporting and obviously statements and management in the past and they were standing by their accounting, and disclosure and revenue recognition hand now we know that that's actually not the case, so i think at this time there's too many unknowns. substantial risks. there is price benefit managers who could retaliate at vealeant and they are essentially paying their bills. >> right. >> and what else don't we know about the company. >> so stay away. thanks so much for joining us. we appreciate it. >> my pleasure, thanks, melissa. that was a great call, still saying stay away. >> interesting. i mean, the guy is obviously doing his work and was looking at changes in the business model. to me this is not about the business model but about the accounting and what you can truly understand and trust in terms of information o

pershing has one board member on the board of valeant. does that limit his ability to sell and get out of positions which may look bad and may look like they are getting worse his hands are tied? >> excellent point, harvard hottie, yes. >> so demeaning what you just did. >> coming up next, we've got the final trades. stay tuned. here at the td ameritrade trader group, they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. thanks man. imagine if the things you bought every day... ...earned you miles to get to the places you really want to go. with the united mileageplus explorer card, you'll get a free checked bag, two united club passes, priority boarding, and 30,000 bonus miles. everyt

valeant, the bombs keep dropping. stock is up today. to step down.ng the company also accusing the former chief financial officer of taking over for two months while harrison was gone. accusing him of improper conduct. this is howard schiller. and bill atkins is going to be joining the board. can you keep all of this straight? i will bring you the senior health care analyst at renshaw. he joins us now. crazytainly was kind of a press release that was released this morning. we still have up by reading on this stock. why? >> if they can stave off for four -- default, this would justify repainting of a buy rating three of. the lower guidance show that they can meet, they are able to get near-term issues resolved. it is a question of whether or not they can final their financial statements in line with the deadlines that are in the covenants with their debtholders. and state law and inventive default. they have not missed any payments as of yet. betty: you are confident they can do this? >> the main issue is whether or not they can get a cl

valeant. shares of valeant halted in early trading. the company searching for a new ceo as mike pearson, who just got back into the seat a little over two weeks ago, stepping down. zack tracer is with us this morning. david and slum, senior research analyst at piper david, i said earlier it was bill ackman who said -- i believe he was saying a portion of that maybe should ipo. the question is, where is the value in this company? not like pearson who built it who led the structure. , wheres not still adore is the real value here? it is hard to know because there have been such deficiencies in the company's financial reporting and internal controls. they have been so aggressive on price increases and presumably that applies to bausch & lomb product. i think when mr. ackman makes a comment about spending up bausch & lomb it sound like he is referring to the bausch and loam that existed before it was acquired by valeant. i don't think you can make the claim now that the bausch and lomb that exist now is the bausch & lomb we knew several ye

and cendant not valeant. but when i look at companies that are benefitting from gasoline, i come up with theme parks, they say no. i come up with try to get convenience stores, they say no. only darden has directly said that lower gasoline has helped them. >> disney is raising prices at parks. >> i think so. disney on a conference call did not talk about that, all they wanted to talk about was espn. i want to talk about "zootopia." >> right. that's right. nice numbers in north america. >> beautiful. thank bob iger there. i mentioned z"zootopia." >> we'll see you tonight. when we come back, breaking news on home builder sentiment and the latest on the primaries. lots to get to with sir richard branson and david cush in a moment. earning 1% cash back everywhere, every time... 2% back at the grocery store... and 3% back on gas... vince of the flying branzinos got a bankamericard cash rewards credit card, because he may earn his living jumping through hoops, but he'd rather not earn cash back that way. that's the

valeant has been halted for the past half hour or so. as becky pointed out, mike pearson leaving the company. ackman to the board. predictable or not, jim? >> no. but there hasn't been much that is predictable. there's a mea culpa note from lehman brothers taking the price target from 135 to 134. taking numbers from 10 -- the reason i point this out is because the numbers are all of the map. no one knows the cash flow, what the company is really do. ackman joining the board is a sign he can't dump the stock. they couldn't dump the stock. this is a great mystery, carl. when you have a company where you have to idea what it will earn, where it's dermatological business is being carved up aggressively by allergan. ophthalmological being carved up by j & j. all this stuff. this is a company, you find yourself asking, these are the kinds of things when you're with a private family company and there's rivalry. this is a public company. this is a travesty. >> statement from pearson himself in the press release, it's been a privilege to lead val

one more question about valeant. is there a ceo out there in the world who can turn this around and who would take the job. >> today we talk about doctor prescribing and some doctors we surveyed they are prescribing fewer valeant products. both doctor side as well as pbm scrutiny. i think there are a number of capable ceos who have been at large pharma or specialty pharma companies and can help turn around sentiment and get new investors interested. >> we have to go. david thank you very much. >>> when we return, jim cramer will join us. more on valeant and on biotech and what's on jim's minds coming up. hey, jesse. who are you? i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at voya.com. >>> welcome back, everyone. let's get down to the nyse. jim cramer standing by. jim, i'm trying to hear your take on what people should be doing ahead of the fed. it seems like investors have

if you want to know why you only need to look at valeant, vrx. ever since we first learned that valeant is using unorthodox practices to sell drugs it's a dark matter over this one. the initial major charge as opposed to smaller leaks about how they're committing accounting irregularities and even it seemed a little -- at the pharmaceutical -- a little radical to call it enron. leff's point out that "the new york times" which published the story about the odd relationship with anonoer company which is scratching the surface. i don't know a lot of talk about the price gouging but valeant seemed like a more aggressive actor in the same plight. once i read citron's stuff i thought forgot it. it isn't -- that's how you have to think. the upside isn't worth i. unless you have total comfort that the shororseller is wrong, i don't know about you, but ever since that report there's not a day of comfort in this story. even if it was being used to move inventory, it wouldn't ding the earnings that badly. plus, it would still have i watched big ackman and c

valeant's core franchises remain strong but we continue to believe valeant could do a better job with it's public and investor relations. who know what is will happen in the next couple of hours with that name but that stock remains under pressure. hillary clinton rolling out an attack add and more news on the regulatory side there. coming up, apple and the fbi back on capitol hill today. we have the latest on privacy versus security and the fight there. plus pete has a hot hand with his trade in the casino stocks but is his best bet to take profits now? find out if he's folding on wynn. >> i see what you did there. owen! hey kevin. hey, fancy seeing you here. uh, i live right over there actually. you've been to my place. no, i wasn't...oh look, you dropped something. it's your resume with a 20 dollar bill taped to it. that's weird. you want to work for ge too. hahaha, what? well we're always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. why don't you check your new watch and tell me what time i should be there

valeant could be a zero. but i think it's helpful to think about how these things could be in parallel. >> makes the ceo selection if the anl gi holds all the more important. let's bring in herb green dszberg, cnbc aamigo, if they cn find someone in the ceo spot and who should that person be? >> i don't know who it could or should be. i thought that report by mike was really great. i will say a big difference between the two companies, tyco had big entities to sell, this is a bunch of different drugs and it's very interesting, i was going back in my archives and one of my short seller friends told me back in august of 2014, valeant is another tyco. people were talking about it going back that far that there were similarities and you know, phase two of tyco was when they started splitting the thing off. with the drugs you have to wonder, i know people are out there wanting to buy, value in the assets, but now this whole pharmaceutical buy to hike the price of the drug strategy, it's kind of broken, valeant has

we want to get more on valeant. ceo mike pearson canceling a call with analysts when he returned from sick leave last week, but has been talking selectively with a few analysts who are bullish on the company. joining us now is david and salon covers valeant for piper jaffray. you did not get a call. do this, were they selectively choose who they want to talk to? >> it is not a good practice but it is not unheard of. when you look at the chain of events, we know mike pearson had been on leave for two months. we know that they had announced a restatement and subsequently withdrew their 2016 guidance, and then he comes back and they announce a call that they had canceled. the next day, he is on the phone with a handful of analyst who all happen to have buy ratings on the stock. carol: and the day after. he talked about greater transparency for the company. so many questions about the company, relationships with other companies. why would you do something like this, especially when he says he wants to be more transparen

let's just take valeant for example. i think part of it might be -- why is bill ackman -- maybe he feels why am i being made the public face of the board for a lot longer than i have yet whenever valeant gets mentioned it's my picture next to the story. >> he was in front of the story. he has been the guy in front of that story. he was behind the scenes. everybody knows who is in what stocks scott but who is out in front of the cameras. >> he made him his partner. so that's why. he's in bed with them. he more than any of the other holders was front and center. that's why. >> a four hour long conference call defending valeant when all of this stuff came out. >> and giving these examples and slide shows. everything else -- scott and i go back and forth about this but i think it's a correlation to the cam newton theory where everybody sees him doing everything else and when things don't go well they say oh my goodness. you got to feel bad for this guy. when you put yourself out there you have to understand what that really

. >> pushing for break up with valeant. here is the problem with valeant. he brought it to put everything together on notion to raise the drug prices. that is not happening. where does this company go from here? very difficult for anything to happen with valeant. liz: thank you very much. charlie gasparino. six minutes to the closing bell will the dow turn positive for the first time this year? that is happening now. will the blue-chips hang on a until the closing bell? you have to stay on "countydown" to find out. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class. now receive up to a $3,000 spring bonus on the e350 sport sedan. (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take

valeant shares are popping as the controversial ceo is out. and we have two ceos from the oil patch today on where they think the sector is going, apache's top man will be here in 15 minutes' time. meantime, michelle caruso-cabrera is with president obama in havana on this historic day. mr. obama and the cuban leader raul castro going to speak soon and we will carry it live. and what would a day be without donald trump? he's in washington. he may be making

that would be valeant. purging square out just within the past hour saying it will take a bigger role at valeant and believes the stock is unvalues. valeant enduring through its worst day in trading history, down 46%. losing $10 billion in market company. david, great to have you with us. >> nice to be here? in your view what the odds that valeant befaults because it can't meet the filing deadline for its annual report? >> i think there is a meaningful chance that it happens. a couple things that i would upon out here. without knowing all the specifics of accounting issues this is a company that has made dozens upon dozens of acquisitions. the accounting is highly complicated some. he when it comes to default, you really can't rule anything out. i think that's one of the reasons the stock is down as much as it is. >> why did it take you so long to downgrade the stock? why wait for the stock to fall 45%, lose $10 billion in market cap to tell people to sell the sell when the issues, the accounting issues, th

. >>> to companies at a crossroad, valeant and united. united, one of the most recognizable brands in the world and both are facing mounting challenges. we begin with united whose ceo is back at work today, two months after a heart transplant that followed a massive heart attack last fall. when oscar munoz can't ease back into his old job. as phil lebeau reports, he has big tasks ahead. >> it may look like business at usual at united airlines but at the company's headquarters, it's not a normal day. the ceo is back in the office and immediately attacking a persistent problem at united, poor labor relations. in a letter to employee, munoz wrote, "i have many priorities on my first day back but at the top of my list is my meeting today with our labor leaders. i believe that together we can resolve our contract issues. those issues, including the amount of a proposed pay raise, led more than 90% of unite's mechanics to reject its most recent contract offer. when union members voiced their complaint at an analyst meeting in new york last week

hyman has been checking in on valeant and one of its big investors. julie: you will just talking regards to herbal life. bill ackman, and his big short in herbal life, but his long is it valeant. not a good day for bill ackman or the other high-profile hedge fund holders of this company. a record one-day drop. take a look at the bloomberg to show the top holders. this is based on filing, so it always comes with a disclaimer that these investors may have changed to some degree. square and it on march 9 when it added 14 million shares to its holdings, bringing his holdings to 9%. looking at valeant, i also wanted to look at some of the other top holdings at pershing square. how to dot to know this, you can message me directly. top holdings are trading lower today, not just values. -- not just valeant. canadian pacific and some other is holdings that he has, it not just valeant today, he is on quite a losing streak withholdings today. if you look at his publicly traded vehicle, which is listed europe, you will see that over the past year and has followed

those valeant shares are down another 10% today. the markets are broadly up except for the health care space, s&p 15 and nasdaq 16 with ten minutes to go. >> some concerned about the impact of a possible donald trump presidency and someone who thinksz it doesn't matter and he'll tell us why. i'm in vests and as a vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests... or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. - the light bulb, a bright idea if you use the right ones. led bulbs use 85% less energy and last a long time, saving you up to $100 over their lifetime. here's an idea: replace yours today. [light instrumental music] >>> eight minutes left with the dow up 187 points. oliver, what do you make of this rally? >> it's pretty good. it's a continuation from yesterday's fed rally. but what's really important, you're seeing financi

scarlet: when you look at valeant share price, it jumped as much as 13%. ceo wasly when the stepping down. how are the debt securities trading? >> we've been looking at that. senior secured debts, leveraged loans, $93. there is some believe there is value to support the company. versus holly valuable it is -- how valuable it is. we are seeing 14.5% of market gap. bonds,y look at market they are low to average. there is concern, you have that embree yield curve, but there is some so of level of belief there is underlying value. scarlet: is that comforting, or should we be for eight people are starting to pick apart the capital structure? >> the two things that are company -- comforting, the higher price short-term. they are $87, the other is $75. they are not trading to a recovery value, but there is some encouraging signs. tracey: i want to show you a cool function, d car s a. risk forne default valeant. you can see a huge spike as the share price really tumbles. this tells a very interesting story. it shows potential default rates in one year over 4%. fiv

it was the worst day in valeant history. shares fell 51% after they cut forecasts and said they would be able to file earnings reports on times. concern about their process practices have turned them into one of the markets worst-performing stocks. valeant is down 87% since august. you.e: thanfrancine: thank lsc is merging with a german rival. we are joined -- you has been following the rumors of the talks and now the confirmation. when you look at lsc and deutsche boerse, lily have regulatory approval? >> that is one of the huge questions, and you wouldn't think they would be so far along as they weren't. they had a call this morning with reporters and said we still have to wait and see. deals of this magnitude in the past -- it could happen again. francine: it was important to get it done before the referendum, because it plays into the brexit debate. >> this deal makes sense for them either way. they say brexit or no brexit, they think this makes sense, that they can create a european champion, a really big piece of europ

clinton including this gem. >> it's called valeant pharmaceuticals. i'm going after them. this is predatory pricing. we'll make sure it is stopped. i'm hillary clinton and i approve this message. >> the guy who said that there's no such thing as bad publicity had not watched that message. anyway, then came a second accounting bombshell. the company said it recognized too much profit in 2014. then valeant exonerated itself. the s.e.c. does the investigation. not the company. that news came out stock was at 76. now if hadn't sold the stock on the accounting irregularities means sell, sure enough, valeant which has the most disclosure said nothing about it on monday delay the release but put out other stuff. when we did find out, the stock got whacked, falling down to 65 and change. close to citron's $50 price target and now it's trading at half of what we learned before we learned about the potential accounting irregularities. i have been accused of keeping people out of stories that were legitimate, but being tarred with the accounting charges. it is t

valeant pharmaceuticals today. is that something -- your ais in there sniffing it out and trying to figure out how to play it -- >> and short it maybe. >> what happens is they do decide whether to -- what instrument to trade, how to trade it, even in how to trade it, they discover if it's a order and at what price. all of those decisions, completely hands off. we get to watch a lot of cnbc because people can't be doing the trading, all the bots. >> got that on while you hope they are taking care of things. it reminds me a little bit of chess, the game that is being waged between computers and humans. i guess if you can program a kpiter to have intuition about making moves on a chess board you could program it to have intuition how to play the market? >> absolutely. that's exactly right. the significance of this go win by the folks at deep mind is exactly that. it's a machine learning system that you can say is developing intuition for playing go. it starts learning how to play and gets so good it can beat the grand

valeant started talking to lenders asking them what they would want to give valeant in order for valeant to get for given on some of its debt, and that is because of the delayed earnings announced earlier this week. for the entire week, valeant is down on the order of 60%. speaking in health care -- let's look at what the health care sector is doing. generally, looking at tenant, community, and hca, on the order of 6.5%, and the sector is actually up by 1.3%. the biggest and best performer right now. this is off the back of what is happening in new jersey. new jersey governor chris christie came out to protect hospitals from losses, saying he on wants a two-year ban lawsuits from cities looking for more taxes from hospitals in order to pay city costs. you know, since the start of the year, david, the s&p health care sector had been down as much as 12%, so we see a rebound off of this. david: thank you. ramy inocencio. map, how to showtime plan to compete with the likes of netflix, hbo? we will hear from the new ceo coming up next. ♪ to.": welcome back let's take a quick check of the ma

it has been a wild couple of days for valeant. they delayed filing an annual report and was subpoenaed by the sec. was called pearson out yesterday, saying he needed time to understand the company's performance after his two month absence. is here, our in-house valeant expert. what are analysts saying right now? joe: this is really interesting. canceled, the company its earnings call, but then quietly told a bunch of analysts get on this call and then we asked about it and they canceled that call. yesterday, they made a couple of one-on-one calls between the ceo to what appears to be a select handful of analysts who are all pretty bullish on the stock and had some one-on-one conversations where he told them he needs time to get back up to speed because he has been gone. he is in position and is going to be -- he said some positive things about the company, the stock was down around 9% or 10% and then these bills are they coming out to reverse those losses and close down less than 1%. it seems to of had an effect. vonnie: even hill

hey listen that stuff you're using from valeant i don't know how valeant is doing. maybe it's time to switch to juvener or think about those accuview contact lenses. this is what happens. it's a wounded tiger. >> is it still a tiger? >> yeah. wounded tigers eat people because they can't hunt. >> they may be eating each other on that board of directors the way they must be going at each other. figure how they got themselves in this mess. >> was there a particular drug he liked? >> like the model. >> the whole model. >> that hillary clinton doesn't like. >> roll them up, use the low tax rate, don't spend a lot on r and d. keep rolling things up. incredibly low interest rates to make acquisitions. raise price of acquired drugs. >> henry silverman. >> again -- >> i did not say -- i said fhs. come on facility some hairs with me. i don't have enough to go around. >> i'm way over here. >> luck of the irish. >> we'll get cramer's mad dash. from wounded tigers to orcas. we'll talk about why seaworld is ending their killer whale breeding program. ♪jake reese, "day to feel a

more on valeant in just a minute. >>> what is working today? big box retailers, walmart higher about a percent, wholesale, costco up about a percent as well. one eye on the markets, the other what is developing into a huge political story. to politics and, of course, team fox business coverage, jeff flock live in north olmstead, ohio, the state where donald trump is looking to be a spoiler. and connell mcshane where victory could spell doom for marco rubio. lori rothman live on the new york stock exchange. first the stakes could not be higher in the battle for the republican nomination at this hour. five states with a total of 367 delegates at stake including the two biggest prizes. you heard it here many times. florida with 99 delegates and ohio with 66. both are winner-take-all states. the latest poll shows donald trump with a commanding lead in florida and on track to add to front-runner status overall. polling in ohio is a much closer race. if the sitting governor john kasich can hold off a trump charge, the republican race could be complet

let's look back at valeant's terrible tuesday. we have got to bring our attention back to valeant, shares plunging today after the drugmaker cut its 2016 forecast that is lower than what it predicted in december. what have we learned? >> this is one of the craziest things. one of the things that just happened on the call they put , out guidance earlier saying a and then they put up a slide on the call and said oh, it is actually $6 , billion. they corrected their own release of guidance hours after issuing guidelines -- guidance. the stock is almost -- this is going very badly. stephanie what does that say : about mike pearson? when he came back into the company, they do not come out with numbers because he said, we are not ready. we want to be sure our teas are crossed and eyes are dotted. here they are, boom, a big mistake yet again. who is checking the spelling over there? >> i am at a loss for words. this was supposed to be a call where -- mike peterson reassured everybody and in the time he has been on the telephone with anal

coming up, the day after valeant's huge loss. meg along with the latest on the troubled drug maker and over one hour until the fed, we're heading for the futures pitts. ahead of the big decision. halftime report back after this. everhas a number.olicy but not every insurance company understands the life behind it. for those who've served and the families that have supported them, we offer our best service in return. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life. >>> we are counting you down to the fed's decision on interest rates right at 2:00 p.m. eastern time and followed by the news conference from janet yellen. we have a huge line-up for you. bill gross, scott maynard, they're all going to join us preview the number and break down the results afterwards. all gets underway at the top of the hour. first back to you scott. >> we'll see you soon. the yield on the ten year is hitting the highest level since late january. jackie at the nymex with the futures now cr

betty: how committed is valeant to this drug? talked about they the smaller units underperforming, this is one of them. saide call, mike pearson we are working on it, but it has a lot of work to do. that's going to involve a lot of work working with the companies who pay for the drugs. this is part of the problem had a lotd --valeant of areas. they had to convince insurers to cover the drugs and because of some of the reputation issues they have been dealing with an issues with pushing the price of drugs, there has been some pushback. we don't quite know exactly what played into the significantly downgraded forecast but part of the thinking is they are getting pushed back from the payer community. if that is what is happening, that's a problem they have to deal with. is either commit more to it and double down or is there a possibility they could sell the drug out into the market? cynthia: i doubt they would do that so quickly, but they could. i talked to a lot of people who really believe in the drug and say it really work for m

delayed earnings filings is coming back to haunt valeant. they have been approaching lenders to gauge what they will want in return for waving a default clause. scarlet: will they be able to stave off default? let's speak to our reporter who helped break the story. is this a big deal or in incremental move? valeant had a rough weekend. they are trying to reach out to these lenders. they have until march 30 to file and then after that, they have 30 days to kill that. they don't want to get into that situation and they are trying to reach out to lenders and get some wiggle room. it is important for them. alix: what kind of concessions might they have to deliver? >> the company probably has a list of items in mind the lenders wind and they will have to find a middle ground. this could be higher interest rates on the loan, faster paydown of the loans, they would demand a waiver. right now the banks are taking the temperature to see what would be the most plausible thing, the most this site -- acceptable thing and then they will draw up a list of

yesterday michael pearson, the man behind that valeant business model was fired. pressure seemed to be lifting from the group. i don't want to pronounce the big bear market over all of health care, however, it does seem to be the case the pressure is off for now with big pharma and fast-growing biotech stocks having reached levels with the sellers seem to have gone away. buyers worried and having a bit of an appetite. even when the market was down off the belgian tragedy this morning, you saw these health care stocks starting to go that was happening because valeant was rallying at the get-go. as investors increasingly seem to think it's over the hump, i worry about the $30 billion in debt valeant has. while you may want to trade it because the stock has fallen too far, i don't have a handle how the company is doing. i can't recommend it to you. i saw it popped 10% today like everybody else. i think there is enough quality pharma to reach down the food chain for something like valeant. i think it's worth noting something else that suggests stocks are under value.

valeant, this is a story i care about. they reported earnings that missed sales estimates and gave the company guidance that lowered previously estimated shares. we know who does not like that. mr. bill ackman. the first activist in this trade. these are tough days. mike pearson back in the seat for 2.5 weeks >> a lot of rich guys getting poorer this morning. really interesting what happened. they came back two weeks ago. them, theye one of came out, said nothing we have heard changes our positive you about this company. the company comes out in the cut the guidance by $1.5 billion. they say they're going to shave 25%.lose to stephanie: we have been talking about this company for the last 10 months. when we are dancing in the 50's, it is a different story. >> it says bungalow to -- it just about every line. >> some of these businesses are not doing well and there are no cost productions to compensate. bad things. all anybody wants now is this company to get on its feet, get stable, and deliver results. you are saying you c

it is down, in sympathy with valeant. although this is a continuation of the pressure that has taken it down 15% over the last year. relies more on generic drugs, something that pressures margins. however, one person says this is an unfair drag on anendo. alix: what is going on with tech stocks? abigail: we have apple nicely higher. reverse higher. one is amazon. amazon says it will launch a service for the cloud. it is said they are further flexing their muscles into the cloud, which could be at judgment to -- at detriment to oracle. alix: thanks so much. scarlet: let's check in now with our bloomberg first world news. mark crumpton has that from the news desk. mark c.: thank you. donald trump and hillary clinton can each take big steps forward as five states hold primaries. for republicans, ohio has become the crucial battleground. recent polls show governor john kasich with the slightly over mr. trump. however, pull show mr. trump with a double-digit lead in florida. that could mean for marco rubio, and and to his camp

. >> valeant. >> a lot of things. endo yesterday. >> endo -- whoa. >> endo days. >> horizon. >> how is diplo doing? another bad one. >> valeant was in part a focus yesterday. you know, if you ever were in the communications profession trying to argue the merits of why you matter, you could say, well, here's why. look what valeant has done over the last five days in terms of it's inability to appropriately communicate with its base a series of missteps that led to significant drop in its share price. last week on friday, they were scheduling this meeting on monday with then ceo howard shiller only to cancel those meetings when mike pearson comes back as ceo on sunday and withdrawing guidance, then scheduling a meeting for monday with analysts late in the day that they cancel as well, because people in the press found out about it. not to mention they have generic competition to a key drug from salex pharmaceutical, a company they acquired a year or so ago. this news about a different s.e.c. investigation, not a surpris

valeant stock down 16%. >>> among the stories that are front and center check out shares of valeant pharmaceuticals. they are down pretty sharply. on this last check you can see the stock is down by over 16%. this comes after the drugmaker reporting quarterly profit of $2.50 a share. that missed the streets estimates by 11 cents. it cut its revenue forecast for the full year. these are results that had been delayed for several week. mike pearson the ceo is back after a couple of months of medical leave. he'll be speaking to wall street for the first time in a half hour. we're an hour away from retail figures. and new jersey voters can decide whether to allow two casinos in the northern part of the state. >>> we're talking about lyft launching a car rental program with gm. the goal is to let drivers work for the ride handling app without having a car. >> in the united states alone $2 trillion is spent every year on car ownership. and so there's a massive opportunity as more and more millennials and others in cities switch over from car ownership to transportation as a service, they are picking lyft

has valeant being a -- >> there's nothing wrong with it except it's valeant. you would think that a company could do this, make these fixed charges. the trouble is, a, it is valeant, and there's an existence at threat on the are accounting procedures, the filings, so as my son charlie grant reported today in "wall street journal," the results are actually binary. it's either solid or not. so the debt is a speculation, but not attractively priced. you can't look, for example in the desea drilling business and finds securities priced on a speculation to yield upwards of 30. >> you mention a couple of them in your her as well. not liked, but that they might be able to rite out the storms. these are really byman or woman's risk. however you roll the dice with valeant at a possible yield, so they're not exactly apples and oranges, but the point is with valeant there are better speculations. >> you've also said or one of your colleagues in the past said -- observed that the longer a business is under a valeant umbrella, the worse it performs. >> that's the great eva

that's when we talked about valeant. one of the biggest, longest investments, big backer of the ceo and remains one even as we read about more tension over his role. the rest of that interview coming up next hour. >> looking forward to that. as "closing bell" goes coast to coast. on the east coast, the dow is up 50 points, much more to come from san francisco. kelly speaks with the co-founder of liyt about the ride sharing service's ipo plans and battle for market share with the big one, uber. joined by adel alsayed to discuss holding in lyft. the road for the white house reaches a critical juncture as their home states gear up for primaries tomorrow. more on the high stakes battle coming up on "closing bell." thank you. imagine if the things you bought every day... ...earned you miles to get to the places you really want to go. with the united mileageplus explorer card, you'll get a free checked bag, two united club passes, priority boarding, and 30,000 bonus miles. everything you need for an unforgettable vacation. the