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.

See Full Article

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.



Advertisements

Latest Economic News

  • Homeland Security chief mulling greatly expanded airplane laptop ban

    Economic CBC News
    Department of Homeland Security Secretary John Kelly said Sunday he's considering banning laptops from the passenger cabins of all international flights to and from the United States. That would dramatically expand a ban announced in March that affects about 50 flights per day from 10 cities, mostly in the Middle East. Source
  • U.S. mulls banning laptops on all flights to and from the country

    Economic CTV News
    WASHINGTON -- Homeland Security Secretary John Kelly said Sunday he's considering banning laptops from the passenger cabins of all international flights to and from the United States. That would dramatically expand a ban announced in March that affects about 50 flights per day from 10 cities, mostly in the Middle East. Source
  • Most Airbnb hosts still not registered in Quebec under year-old regulations

    Economic CTV News
    The majority of Quebecers who list their properties on Airbnb and other home rental websites are not registering with the province, just over a year since it implemented a law regulating them, new data suggests. Source
  • Advocate calls for chicken irradiation in Canada

    Economic CTV News
    A consumer advocate is pushing Ottawa to promote the irradiation of chicken to kill illness-causing bugs and to do a better job of getting buyers on board. Bruce Cran of the Consumers Association of Canada said the federal government has done "an incompetent job" informing Canadians that irradiation is safe and he worries that a lack of action could lead to a deadly outbreak. Source
  • British Airways aims to recover from IT failure

    Economic CTV News
    LONDON -- British Airways said Sunday it was still working to restore its computer systems but hoped to resume flights from London airports, a day after a global IT failure crippled its services. The airline said that it hopes to operate a "near normal schedule" at Gatwick and the "majority of services" from Heathrow on Sunday. Source
  • Canadian teenagers smarter than most about money, OECD finds

    Economic CBC News
    Canadian teenagers are more financially literate than most people their age in other rich countries, but more than one out of eight still fails to meet what the OECD considers a baseline level of proficiency in the topic. Source
  • People with serious food allergies want impostors to stop faking it in restaurants

    Economic CBC News
    Sarah Elliott has had it with people faking food allergies in restaurants. She has life-threatening allergies to eggs, dairy and nuts and fears the impostors are hurting her chances of safely dining out. Source
  • GM's emissions scandal and dangerous avocados: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    If you've been too busy to follow the consumer news this week, here's our cheat sheet. And you can get the Marketplace newsletter in your inbox every week. GM accused of emissions cheating A class-action suit in the U.S. Source
  • CN Rail employees issue strike notice

    Economic CTV News
    MONTREAL -- A union representing employees at CN Rail is threatening job action to back contract demands. The Teamsters union has given the company 72 hour strike notice and could legally walk off the job Tuesday morning. Source
  • British Airways cancels flights amid global computer outage

    Economic CTV News
    LONDON -- British Airways cancelled all flights from London's Heathrow and Gatwick airports Saturday as a global IT failure caused severe disruption for travellers on a busy holiday weekend. The airline said it was suffering a "major IT systems failure" around the world. Source