Valeant Pharmaceuticals International, Inc. VRX announced that an accounting review related to Philidor, which was undertaken by the ad hoc committee appointed by the board of directors, has been completed.The committee did not identify any additional items that would require restatements beyond those previously disclosed matters.Evidently, this gave investors a ray of hope, as shares of the company gained 10% on the news.Valeant’s relationship with Philidor Rx Services, a specialty pharmaceutical company providing back-end services, came under the scanner in Oct 2015 after it was alleged that the latter was urging pharmacy benefit managers to opt for expensive drugs over their cheaper generics.The ad hoc committee was appointed to review the company's relationship with Philidor. Valeant, subsequently, terminated its relationship with Philidor, whereby it lost 20% of prescriptions and $250 million in sales in the fourth quarter of 2015.In Feb 2016, the committee reported the identification of approximately $58 million of net revenue, previously recognized in the second half of 2014, which were supposed to be identified on the supply of products to patients rather than on delivery to Philidor.Since the review has been completed, the ad hoc committee will now be dissolved. Valeant plans to file its Form 10-K on or before Apr 29, 2016.The company’s credit agreement and bond indenture contain financial reporting requirements that may be impacted by a delay in the filing of its 10-K. Last week, the company has asked its lenders for a grace month to file its annual report, thereby reducing the risk of default if it misses the current deadline of Apr 29.Valeant is seeking to extend the deadline for filing its 2015 annual report (Form 10-K) to May 31, and the deadline to file its first-quarter report (Form 10-Q) to Jul 31. Under the terms of its credit facility, the company currently faces an Apr 29 deadline for its annual report, and a Jun 14 deadline for its first-quarter results. A failure to file these reports within the stipulated deadline would lead the company to be in default on its credit facility.Valeant currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the health care sector include Endocyte Inc. ECYT, ArQule Inc. ARQL and Sucampo Pharmaceuticals SCMP. All the three stocks sport a Zacks Rank#1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report ARQULE INC (ARQL): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report ENDOCYTE INC (ECYT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research