Valeant PharmaceuticalsInternational Inc.’s embattled Chief Executive Officer Mike Pearsontook a step to reassure his employees on Wednesday, saying ina memo to workers that the company won’t go bankrupt andapologizing for the recent turmoil.

The drugmaker’s shares plunged 51percent on Tuesday after Valeant cut its 2016 forecast, reportedweak preliminary fourth-quarter financial results and said itrisked breaching some of its debt agreements if it can’t file itsannual report in time. Pearson, who apologized for the company’smissteps during a two-hour conference call with analysts onTuesday, had just returned from a two-month medical leave.

Responding to concerns raised by employees that the companywas on the verge of bankruptcy, he said “I can assure you we arenot,” according to the e-mailed memo to employees viewed byBloomberg News. At issue is the delayed filing of Valeant’s 10-Kannual report to the U.S. Securities and Exchange Commission.Missing that deadline can result in a default on some of thecompany’s bonds and loans.

“This is a matter we are taking very seriously,” he said in thenote. “We are working to extend the deadlines in our loanagreements, and I am confident we will be able to do so.”

Valeant spokeswoman Laurie Little declined to comment.

Slower Growth

Pearson said the Laval, Quebec-based company is forecastinglower growth for some of its businesses, including U.S.dermatology, gastrointestinal and women’s health, as a result ofpressures from managed care, which typically refers to pharmacybenefit managers and major insurers. He also cited the pricingenvironment and a “slower-than-expected start to 2016.”

Valeant shares fell 0.5 percent to $29.46 at 9:46 a.m. in NewYork Friday. Through Thursday, the stock had declined 89 percentsince its Aug. 5 peak of $262.52.

“Restoring the public’s confidence will take time and I want toapologize directly to each of you for the distractions this intensescrutiny is causing you,” he said in the memo. “Please know that Iam working as hard as I can to turn things around, and I believe wewill.”

Price Hikes

Valeant developed a reputation for making aggressive price hikes onits drugs, a strategy that has come under scrutiny andresulted in the company’s management testifying before Congressthis year. A survey for Bloomberg News found 13 Valeantdrugs in the U.S. that have at least doubled in price sinceDecember 2014, more than any other large company.

Valeant is moving to a new distribution model after it said inOctober that it would end its relationship with mail-order pharmacyPhilidor Rx Services. That followed reports of tactics thatPhilidor allegedly used to gain more insurance reimbursements forValeant medicines. Valeant reached an agreement with WalgreensBoots Alliance Inc. in December to sell skin and eye medicationsthrough the drugstore chain.

Pearson said the overall business is growing, adding that theWalgreens program is off to a “terrific” start. He also saidcontact lenses, oral health, oncology, generics and some emergingmarkets were showing positive results. And for businesses with aslow start in 2016 -- such as prescription ophthalmology, Solta andObagi -- he said he’s confident they can get “back on track” thisyear.