$VRX: The stock is down from $250 to $98 and shoul
Post# of 23071
Posted On: 11/02/2015 12:21:48 PM
$VRX: The stock is down from $250 to $98 and should have some room to bounce.
Michael Rapoport from WSJ reported:
A short seller attacking Valeant Pharmaceuticals International Inc. offered no new allegations in an updated report on the company Monday, after he hinted Friday he would unveil new bombshell accusations.
Andrew Left of Citron Research alleged in a report on Valeant on Oct. 21 that the drug company was using specialty pharmacies including Philidor Rx Services LLC to commit fraud. Valeant has denied Mr. Left's allegations.
On Monday, he said called specialty pharmacies Valeant's "secret strategic channel" and speculated that they would be used to an improper end, but he didn't present evidence of illegality, saying "if we had subpoena power we could prove everything, but we don't."
Shares rose 4.2% midmorning, after declining 16% on Friday. The Wall Street Journal on Sunday reported that Mr. Left said he didn't plan to reveal anything "earth-shattering" on Monday.
In a statement Monday, Valeant said Citron "admits in its latest report that it has no substantiation for further allegations against Valeant" and that it was "not surprised, even as Citron continues to mislead investors in an attempt to profit by driving down our stock." The company said it would "continue to focus on running our business in an honest and transparent manner." Valeant says it has asked the Securities and Exchange Commission to investigate Mr. Left and Citron. The SEC declined last week to comment on the matter.
Mr. Left on Monday contended the drug company's stock would be "toxic" for the foreseeable future because of the questions around Valeant. Among them, he mentioned heightened scrutiny from pharmacy-benefit managers and auditors and questions about Valeant's drug-pricing and acquisition strategies.
He said his work on Valeant "is done."
Valeant last week said it was breaking ties with Philidor, which it had an option to buy, and that the specialty pharmacy would be shutting down. It also said it had created a board committee to look at its relationship with Philidor.
The Wall Street Journal has reported that Philidor used aggressive tactics to sell Valeant drugs, according to former employees and pharmacy industry officials. The Journal has also reported that some Valeant employees working at Philidor used fictitious names in emails such as "Peter Parker."
A Philidor representative couldn't immediately be reached for comment.
Valeant's chief executive, J. Michael Pearson, said last week: "We understand that patients, doctors and business partners have been disturbed by the reports of improper behavior at Philidor, just as we have been. We know the allegations have also led them to question Valeant and our integrity, and for that I take complete responsibility."
Philidor has said it "is the patient's advocate in seeking to ensure that they receive the medication that was prescribed by their doctor at the lowest possible cost to them."
Write to Michael Rapoport at Michael.Rapoport@wsj.com
Michael Rapoport from WSJ reported:
A short seller attacking Valeant Pharmaceuticals International Inc. offered no new allegations in an updated report on the company Monday, after he hinted Friday he would unveil new bombshell accusations.
Andrew Left of Citron Research alleged in a report on Valeant on Oct. 21 that the drug company was using specialty pharmacies including Philidor Rx Services LLC to commit fraud. Valeant has denied Mr. Left's allegations.
On Monday, he said called specialty pharmacies Valeant's "secret strategic channel" and speculated that they would be used to an improper end, but he didn't present evidence of illegality, saying "if we had subpoena power we could prove everything, but we don't."
Shares rose 4.2% midmorning, after declining 16% on Friday. The Wall Street Journal on Sunday reported that Mr. Left said he didn't plan to reveal anything "earth-shattering" on Monday.
In a statement Monday, Valeant said Citron "admits in its latest report that it has no substantiation for further allegations against Valeant" and that it was "not surprised, even as Citron continues to mislead investors in an attempt to profit by driving down our stock." The company said it would "continue to focus on running our business in an honest and transparent manner." Valeant says it has asked the Securities and Exchange Commission to investigate Mr. Left and Citron. The SEC declined last week to comment on the matter.
Mr. Left on Monday contended the drug company's stock would be "toxic" for the foreseeable future because of the questions around Valeant. Among them, he mentioned heightened scrutiny from pharmacy-benefit managers and auditors and questions about Valeant's drug-pricing and acquisition strategies.
He said his work on Valeant "is done."
Valeant last week said it was breaking ties with Philidor, which it had an option to buy, and that the specialty pharmacy would be shutting down. It also said it had created a board committee to look at its relationship with Philidor.
The Wall Street Journal has reported that Philidor used aggressive tactics to sell Valeant drugs, according to former employees and pharmacy industry officials. The Journal has also reported that some Valeant employees working at Philidor used fictitious names in emails such as "Peter Parker."
A Philidor representative couldn't immediately be reached for comment.
Valeant's chief executive, J. Michael Pearson, said last week: "We understand that patients, doctors and business partners have been disturbed by the reports of improper behavior at Philidor, just as we have been. We know the allegations have also led them to question Valeant and our integrity, and for that I take complete responsibility."
Philidor has said it "is the patient's advocate in seeking to ensure that they receive the medication that was prescribed by their doctor at the lowest possible cost to them."
Write to Michael Rapoport at Michael.Rapoport@wsj.com
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