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

  • TransCanada sends more crews to Keystone pipeline leak

    Economic CTV News
    AMHERST, S.D. -- TransCanada Corp. says the company has sent additional crews and equipment to the site of a 210,000-gallon oil spill from its Keystone pipeline in South Dakota. TransCanada said Saturday it is making progress in its investigation into the spill cause on farmland in Marshall County, near the North Dakota border, about 250 miles (402 kilometres) west of Minneapolis. Source
  • U.S. treasury chief a Bond villain? Mnuchin OK with comparison

    Economic CTV News
    WASHINGTON -- U.S Treasury Secretary Steven Mnuchin said Sunday he had no idea that a photo of him and his wife posing with a sheet of newly printed money would go viral. And he said he's not bothered that some commentators suggested the pair looked like James Bond villains. Source
  • 'Never a dull moment': Lawsuit, NAFTA claim, Fairfax partnership spur optimism, tension in Churchill

    Economic CBC News
    The future of the rail line to Churchill remains uncertain after a week that involved a lawsuit, an international trade challenge and the entry of a new, powerful player into the picture. The week's developments have raised cautious optimism in northern Manitoba, but also questions about the future of Arctic shipping and of communities along the northern rail line. Source
  • Truckers take cautious approach to all-electric vehicles

    Economic CBC News
    All-electric trucks have the potential to save money for fleet operators, particularly if maintenance costs prove to be lower than diesel, but there are still some significant barriers to their adoption, according to trucking industry veterans. Source
  • How to buy a car without getting ripped off: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    How a student gamed rewards points This Montreal law student student racked up enough free rewards points to travel the world. Here's how he did it: he used his credit card to buy silver coins from the Mint and collect rewards points, then deposited the coins and paid off the card. Source
  • Honda recalls Odyssey minivans after dozens of reported injuries

    Economic CBC News
    Honda is recalling about 900,000 of its Odyssey minivans because the second-row seats may tip forward if not properly latched.Honda recalls 2.1 million vehicles worldwide over fire riskPHOTOS | Owner of fire-razed Honda Accord wants action after company recallThe recall announced Saturday covers vehicles from the 2011-17 model years. Source
  • 'This is bunk': WestJet apologizes for misleading passengers about why it cancelled flights

    Economic CBC News
    In response to a CBC News investigation, WestJet has admitted it mistakenly told passengers that hurricane-related airport restrictions had forced it to cancel Turks and Caicos flights. The airline now says it actually cancelled flights from Oct. Source
  • BlackBerry COO Marty Beard resigning to deal with family situation: CP

    Economic CTV News
    TORONTO -- A person with knowledge of the situation says that BlackBerry Ltd.'s chief operating officer has resigned in order to deal with a family health issue. The source who spoke on condition of anonymity says that Marty Beard will leave the company effective Dec. Source
  • Loblaw pre-orders 25 Tesla electric trucks for undisclosed price

    Economic CTV News
    MONTREAL -- Loblaw Companies Ltd. says it is among the first purchasers of Tesla's new electric truck. Canada's largest supermarket chain (TSX:L) says it has pre-ordered 25 of the vehicles called the Tesla Semi. Source
  • Canadian funds like energy stocks despite potential rejection in Norway

    Economic CTV News
    CALGARY -- Oil and gas investments may have soured for managers of the Norwegian sovereign wealth fund but a Canadian fund says it has plenty of room for such securities in its portfolio. In a letter this week, Norway's central bank urged the Norwegian government to consider divesting oil and gas company shares held in the US$1-trillion oil fund to avoid the risk of permanently lower commodity prices. Source