They were paying millions a year for a salesforce hoping to sell this huge dud of a drug addyi. It was throwing good money after bad. The only thing left that I'm worried about is the SEC investigation into their Philador division, there will likely be some pretty big fines but it will be manageable. They will soon find a big name pharma CEO soon and this stock is off to the races.
Hedge funds like Ackman's and large mutual fund holders like T.Rowe Price aren't leveraged and will likely be adding more once there's a sign of good news. Retail brokerage account holders of VRX would've likely been sold out today, most panicked out of the shares. On top of that, I'm sure there's loads of novice 'traders' who actually went short down here and will be easily squeezed out once the company files it's 10K within the next month. CEO Pearson said he expects the company to file sometime in April. There's little to no risk of bankruptcy with only $1B in debt payments due in the next two years. They can renegotiate the terms of these loans for an extension or sell a couple of their drugs. Simply filing the 10K will cause the stock to rally sharply, keep that in mind.