Valeant Pharmaceuticals is hitting another rough patch.
After a mostly quiet January, the former stock market darling has been hit by news of SEC investigations, questions about its business model, and a delay of its earnings.
Here’s a timeline of what’s happened to Valeant’s shares over the past six months:
September 21: Hillary Clinton tweets about price gouging, and the whole biotech market slumps.
Per cent change in stock from prior day’s close: –5%
September 28: Valeant’s CEO Mike Pearson sent a company-wide email addressing concerns about the stock price that had fallen by about 20% over the last week.
Later that day, Democrats on the US House Oversight and Government Reform Committee wrote a letter asking their chairman to subpoena Valeant for information on their pricing strategies. The cherry on top of a not-so-great day for Valeant came that afternoon when short-selling firm Citron Research published a report questioning the company’s drug prices.
Per cent change: –17%
October 2-5: The stock continues to tumble. By Monday, October 5, Valeant’s stock had lost nearly one-third of its value.
Per cent change: –10%
October 15: Valeant receives subpoena requests from the US attorney’s office for the District of Massachusetts and also from the US attorney’s office for the Southern District of New York.
Per cent change: –5%
October 21: Citron accuses Valeant of fraud, asking if it is the “pharmaceutical Enron.” The short-seller opens a whole new front in the campaign against Valeant by calling it out for its relationship with Philidor, a specialty pharmacy. These pharmacies are meant to help patients that have prescriptions that require a little more attention, such as medications that require refrigeration. Citron alleged that Valeant was using Philidor to jack up the prices of drugs.
Per cent change: -19%
October 22: As more information about Valeant and its relationship with Philidor emerged, the stock’s price continued to fall. Valeant categorically denied any wrongdoing.
Per cent change: -7%
October 29: CVS removes Philidor from its network, citing “noncompliance” as its reason. Express Scripts and United Health’s OptumRx, companies that manage pharmacy benefits, also ended their relationships with Philidor.
Per cent change: -5%
October 30: The next morning, Valeant breaks up with Philidor. The same day, activist investor Bill Ackman defended his large investment in Valeant with a four-hour-long conference call. Investors weren’t convinced.
Per cent change: -16%
November 4: The Senate launches an investigation into price gouging, looking into Valeant’s pricing strategies along with Turing Pharmaceuticals and two other drug companies. Not to be outdone, Democrats in the House of Representatives launched a drug-pricing task force, and in a letter sent to the chairman of the Oversight and Government Reform Committee, Democrats on the committee called for a hearing on Valeant and Turing later this month.
Per cent change: -6%
November 5: The Wall Street Journal published an email sent by Ackman to Valeant CEO J. Michael Pearson, in which Ackman tells Pearson his “reputation is at grave risk.” The email brings into question Pearson’s leadership of the company.
Per cent change: -14%
November 12: Stock hits a two-year low, closing at $73.77 after a US judge decides Valeant and Ackman must face a lawsuit accusing them of insider trading before Valeant attempted to acquire Botox-maker Allergan. Although the event was unrelated to the recent drama, the stock still slumped.
Per cent change in stock from prior day’s close: -7%
December 15: Valeant partners with Walgreens to expand distribution.
Per cent change: +16%
December 16: Valeant cut its fourth-quarter adjusted earnings per share from $4.00 to $4.20 down to $2.55 to $2.65. But the stock was still soaring in the wake of the Walgreens news.
Per cent change: +8%
December 28: J. Michael Pearson goes on medical leave after being hospitalized for pneumonia. At first, an “office of the chief executive” is put in place. Eventually Howard Schiller, Valeant’s former chief financial officer, becomes interim CEO.
Per cent change: -10%
February 4: A relatively quiet January leads into a heated Congressional hearing, at which Schiller testifies.
Per cent change: +2%
February 19: Wells Fargo argues in a research note that Valeant’s old business model is out, and the new it’s working with won’t sell on Wall Street.
Per cent change: -10%
February 22: The report keeps the stock slipping through Monday, when Valeant announces it will need to restate its earnings.
Per cent change: -11%
February 29: Pearson returns from medical leave and has a pretty rough first day back in the office after announcing that the SEC is investigating the company and that Valeant’s earnings release will be delayed.
Per cent change: -18%
Total per cent change September 20 to March 2: -72.5%
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