UPDATE: Valeant Plunges 7% After Bearish Wells Fargo Report

Valeant's stock has reacted to Wells Fargo's latest analysis of the company, seen below on Benzinga Pro.

Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) opened for trading on Friday at $90.48 and moved lower throughout the morning trading session. After nearly 2 full hours of trading, the stock had lost more than 7 percent and hit an intra-day low of $69.33.

Valeant closed for trading at $94.11 on Thursday.

Investors were reacting to a negative report by Wells Fargo's David Maris who initiated coverage of Valeant with an Unperform rating and valuation range of $65 to $68, implying a potential downside of more than 40 percent.

Related Link: Valeant Has 42% Downside And Too Many Questions, Wells Fargo Warns

Maris also suggested that Valeant had a 58 percent chance of bankruptcy last year based on an Altman z-score analysis. According to Maris, an Altman Z-score below 1.8 is a signal of financial distress, and Valeant's Altman Z-score has been below this threshold for each of the last five years.

Valeant's current score is only 0.79, which suggests a bankruptcy probability of 58.4 percent.