Canadian drug company Valeant Pharmaceuticals is halted in the premarket for news pending.
The stock was last trading down around 4.48% in the pre market at around $25.77 per share before being halted.
Finance Twitter is speculating on the news pending, with #valeantguesses trending Monday morning.
The company reported fourth-quarter earnings results last week that fell below analysts expectations, and it cut its revenue forecast for the year by about $1.5 billion, or 12%. The company has also delayed filing its 10-K.
It’s been a tough run for Valeant, which has been sliding since late 2015 because of accusations of accounting irregularities from a short seller and scrutiny in Washington, D.C., over drug-price increases. Just last month, the company confirmed that it was part of several ongoing investigations.
Numerous hedge funds are large shareholders of the stock. They have suffered massive losses, at least on paper, on their positions.
Activist investor Bill Ackman, the founder of the $12 billion Pershing Square Capital, is the largest hedge fund shareholder of Valeant. He ;ost, at least on paper, more than $1 billion on his position last week. He’s lost an estimated more than $2.5 billion (again, on paper) since buying the stock in the first quarter of 2015. He is also having the worst year in his fund’s history.
In an email to investors, Ackman pledged to take a “more proactive role at the company to protect and maximise the value of our investment.”
Earlier this month, Pershing Square added its vice chairman, former mergers and acquisitions attorney Steve Fraidin, to Valeant’s board.
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