Shares of Bausch Health Companies (NYSE:BHC) experienced a significant drop, falling approximately 21.6% to $5.94, following a report by Reorg that suggested the pharmaceutical giant might be considering a prepackaged Chapter 11 bankruptcy filing.
This report led to heightened investor concerns, reflected in the sharp decline in the company’s stock value during the trading session.
Despite the claims made by Reorg, Bausch Health has publicly denied any ongoing negotiations with its creditors concerning bankruptcy proceedings.
The company emphasized its non-involvement in such discussions, attempting to alleviate market fears stirred by the initial report.
Year to date, including the latest session's downturn, Bausch Health's stock has declined by 26%, indicating a tumultuous period for the company amidst market uncertainties and speculative reports.
Investors and market observers are closely monitoring the situation, awaiting further clarity from credible sources.