Pearson continued, "In discussion with the Board, we have assumed lower growth in our USA dermatology, gastrointestinal, and woman's health portfolios, as well as certain geographies like Western Europe, while keeping our expenses largely unchanged".

The shares dropped as much as 44 percent to $38.21 on Tuesday morning in Nasdaq trading, the lowest level since 2012. Track the stock here. The specialty pharmaceutical company reported $2.50 earnings per share (EPS) for the quarter, missing the Thomson Reuters' consensus estimate of $2.61 by $0.11, Analyst Ratings.Net reports.

Valeant now estimates between $2.3 billion and $2.4 billion in revenue for the first quarter of 2016, down from the previous estimate of between $2.8 billion and $3.1 billion.

For the year 2016, Valeant Pharmaceuticals estimated to achieve adjusted earnings of around $9.50 to $10.50 per share, down from $13.25 to $13.75 per share. Similarly, the company reduced its top line forecast to $2.3 - $2.4 billion from the earlier guidance of $2.8 - $3.1 billion. In its statements Tuesday, Valeant said its failure to file by March 15 put it "in breach of the reporting covenant in the indentures, and the trustee or holders of at least 25% of any series of notes may deliver a notice of default".

The company expected its revenue to be around $11 billion to $11.2 billion, lower than its previous estimate of around $12.5 billion to $12.7 billion. "We have to meet or exceed this guidance", Pearson said during the call.

Its efforts to regain confidence may have taken a hit Tuesday when it overstated its forecast of adjusted pre-tax operating earnings before interest, taxes, depreciation and amortization over the next four quarters.

Despite the slide in the stock since Pearson returned from medical leave last month, Pershing Square remains supportive of the Valeant CEO, according to a person familiar with the situation, who asked not to be identified discussing private information. Piper Jaffray lowered shares of Valeant Pharmaceuticals Intl to a "positive" rating and cut their target price for the stock from $193.00 to $133.00 in a research note on Thursday, December 17th.

Now these investors face the eternal conundrum: Whether to stick with an investment that has caused them enormous grief in the hope of paring their losses, or whether to exit and avoid the possibility of worse damage ahead. Since peaking in August, shares of Valeant have plunged more than 85 percent.

Then, on February 22, Valeant said it would restate some of its past earnings after reviewing its relationship with Philidor.

The Canadian drug maker, which is under investigation by U.S. agencies over its business and accounting practices, said it would delay filing its annual report with United States regulators.