Valeant denies short seller report that bludgeoned its stock
October 21, 2015
The Valeant Pharmaceuticals story is going from bad to worse. The latest installment involves accusations by an influential short seller that the drug maker, which is already under investigation for its pricing and patient assistance programs, is exploiting ties to a specialty pharmacy to inflate revenue.
The claim was made in a report issued this morning by Citron Research, which describes a complicated process used by Valeant to ensure prescriptions are filled. At one point, the report, which likened the Valeant saga to the Enron scandal more than a decade ago, wiped out nearly $20 billion in the value of Valeant stock. The shares already lost one third of their value this year.
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