New Valeant CEO Struggles to Reassure Investors

New Valeant CEO Struggles to Reassure Investors

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Business

University

Hard

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The transcript discusses Valiant's financial challenges, focusing on its Walgreens deal, which was intended to improve distribution but is now causing financial strain. With $31 billion in debt, Valiant faces pressure to maintain financial covenants. The company is exploring non-core asset sales to pay down debt, making it a potential takeover target. Analysts express concerns about Valiant's ability to remain solvent, emphasizing the need for careful cash flow management and strategic execution in a challenging market environment.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main financial challenges Valiant is facing according to the first section?

Lack of innovation in product development

High employee turnover

Increasing competition in the market

Losing money on prescriptions

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might Valiant be considered an attractive acquisition target?

Its innovative product lines

Its low share price

Its strong brand recognition

Its large market share

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What strategy is Valiant employing to manage its debt?

Increasing product prices

Expanding into new markets

Selling non-core assets

Reducing workforce

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key concern for Valiant's future as discussed in the final section?

Managing cash flow under debt

Hiring new leadership

Expanding into international markets

Ability to innovate new products

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the outlook of some analysts on Valiant's situation?

Optimistic about future growth

Positive due to new product launches

Bearish due to financial challenges

Neutral with no significant changes expected