Valeant Pharmaceuticals International, Inc. VRX announced that it has received a notice of default from its debtors.The default notice was served by the holders of 5.5% Notes due 2023 as a result of the delay in the company’s filing of its Form 10-K for the fiscal year ended Dec 31, 2015.Under the terms and conditions, Valeant has 60 days from the date of receipt to file the 10-K. This extends the company’s deadline for filing its 10-K to Jun 11, 2016.Last week, Valeant 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 the matters previously disclosed.We note that 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.As a result, the ad hoc committee was appointed to review the company's relationship with Philidor. 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.Meanwhile, Valeant is in the process of restating the affected financial statements and expects to file its 10-K on or before Apr 29, 2016.Valeant currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the health care sector include ArQule, Inc. ARQL, Sucampo Pharmaceuticals SCMP and AMAG Pharmaceuticals, Inc. AMAG. All 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 AMAG PHARMA INC (AMAG): Free Stock Analysis Report SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report ARQULE INC (ARQL): Free Stock Analysis Report VALEANT PHARMA (VRX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research