Embattled Canadian drugmaker Valeant Pharmaceuticals is expected to restate its earnings results, Dow Jones Newswires reports citing unnamed sources.
The stock was last trading down more than 10% in the late session and was trading around $68 per share.
On Monday, the stock had fallen $9.08, or -10.68%, to close at $75.91 per share.
Back in October, Andrew Left, the founder of California-based short-selling firm Citron Research, issued a report asking if the company was running an Enron-like fraud. The Citron report focused on Valeant’s relationship with Philidor, a specialty pharmacy. Citron accused Valeant of using Philidor to book “phantom sales.”
The Canadian pharma giant denied any wrongdoing and soon after severed ties with Philidor.
Valeant also put together an ad hoc committee of its board to review the allegations related to the company’s relationship with Philidor.
We’ve reached out to Valeant for comment.
BREAKING: Valeant expected to restate earnings in wake of internal review, likely to concern sales of drugs to distributor Philidor – DJ
— CNBC Now (@CNBCnow) February 22, 2016
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