VALEANT IS TANKING

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.

Valeant, which had been a hedge fund darling, has collapsed since late 2015 due to scrutiny in Washington, D.C. over drug-price increases and accusations from a short-seller.

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.


 

NOW WATCH: This 27-year-old quit her corporate finance job to travel the world

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.