Valeant shares tumble in wake of restatement

LAVAL, Que. - Valeant Pharmaceuticals (TSX:VRX) says it will restate its financial results for 2014 and 2015 after a review found about US$58 million of sales to Philidor were recognized at the wrong time.

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The Quebec-based company says it should have recognized the revenue when the products were dispensed to patients, rather than when delivered to Philidor - an associated company that sold some Valeant specialty drugs.

Valeant estimates that its 2014 earnings will be reduced by 10 cents per share, in U.S. currency, and 2015 earnings will be increased by nine cents per share.

The restatement will also delay the filing of Valeant's audited financial report for 2015. The company has scheduled a Feb. 29 conference call to discuss its unaudited fourth-quarter results.

Philidor is at the centre of a previous controversy about Valeant's business practices. Valeant said last year that it had severed ties with the online specialty pharmacy company.

In pre-market trading, Valeant shares were down US$2.08 or about three per cent from Monday's closing price.

The stock fell about 10 per cent or US$9.07 on Monday to close at US$75.92 on the New York Stock Exchange. In Toronto, they closed at C$104.16 after falling $12.94 or nearly 11 per cent prior to the restatement announcement.


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