The ratings on Aliso Viejo, Calif.-based specialty pharmaceutical company Valeant Pharmaceuticals International reflect product and pipeline setbacks that have required the company to make substantial management and operational changes over the past two years. The need to replace lost revenue streams through acquisitions and a weak internal R&D program continue to outweigh Valeant's diverse product portfolio and adequate liquidity. Valeant manufactures and distributes a wide range of pharmaceutical products globally. Through recent restructuring activities, the company has refocused its product portfolio on its dermatology and neurology franchises and significantly narrowed its geographic footprint. Recent developments include a partnership with GlaxoSmithKline on the development and commercialization of retigabine (epilepsy); recent international dermatologic acquisitions in Australia, Mexico, and Poland totaling roughly $100
