Valeant says sales to Philidor require restatement of results

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 amounts involved with the Philidor restatement are tiny compared with Valeant's total revenue and profit in 2014. It reported US$8.3 billion of revenue and $1.56 per share of earnings for the 12 months ended Dec. 31, 2014.

In pre-market trading, Valeant shares made up some of Monday's losses. Prior to the company's late-night announcement, Valeant's stock dropped US$9.07 or 11 per cent to close at US$75.92 per share amid news reports that a restatement was coming. Early Tuesday, before markets opened, the stock was trading at US$78.91, up $2.99 from the previous close.

Apart from the disruption caused by any financial restatement by a publicly traded company, Valeant is coping with a previous controversy that erupted last fall when questions were raised about its relationship with Philidor Rx Services.

Valeant's shares fell from $148.66 to $118.61 in heavy trading on Oct. 21. The stock has continued to trade below those levels and hit a 52-week intraday low of US$69.33 in New York on Nov. 18.

Valeant said on Oct. 30 that it had severed ties with the Pennsylvania-based online specialty pharmacy company after reviewing its practices. Philidor subsequently announced that it would cease operations.

The restatement announced this week will 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.



Advertisements

Latest Economic News

  • Investor Warren Buffett says good deals tough to find

    Economic CTV News
    In this Oct. 3, 2017, file photo, investor Warren Buffett gestures on stage during a conversation with CNBC's Becky Quick, at a national conference sponsored by the Purpose Built Communities group that Buffett supports, in Omaha, Neb. Source
  • Ontario restaurant price hikes boost food inflation after minimum wage increase

    Economic CTV News
    Ontario restaurants hiking menu prices after the province raised its minimum wage this year were likely responsible for pushing January food inflation to its highest annualized increase in nearly two years. Overall food prices were 2.3 per cent higher last month compared with January 2017, according to Statistics Canada. Source
  • Supplier to NHL's Calgary Flames breathes again as B.C. wine ban suspended

    Economic CTV News
    VICTORIA -- The operators of a small British Columbia winery that landed a big contract to be the official wine of the National Hockey League's Calgary Flames are relieved their Cabernet Merlot and Pinot Gris are no longer caught in a face off between two provinces. Source
  • NRA faces corporate backlash after latest school shooting

    Economic CTV News
    NEW YORK -- The National Rifle Association is facing a corporate backlash as companies take a closer look at their investments, co-branding deals and other ties to the gun industry following the latest school massacre. Source
  • 'The not so golden years' — a quarter of retired Canadians in debt, survey suggests

    Economic CBC News
    A "worry-free retirement" may be a thing of the past, according to a new Sun Life Financial survey, which finds that a quarter of retired Canadian are in debt in their golden years. About 25 per cent of the 750 Canadians polled between the ages of 55 to 80 years for the Sun Life Financial Barometer said they have debt that ranges from mortgages to car payments. Source
  • Couillard says he is open to advancing Montreal's subway contract to Bombardier

    Economic CTV News
    Quebec Premier Philippe Couillard is suggesting he's open to giving Bombardier a contract to replace Montreal's subway cars in order to stave off potential job losses at the company. Couillard said today during an economic mission to Washington D.C. Source
  • Pension fund manager OMERS earns 11.5 per cent return after all expenses in 2017

    Economic CTV News
    TORONTO -- Pension fund manager OMERS earned an investment return of 11.5 per cent after all expenses last year, topping the 10.3 per cent result it posted in 2016. The defined-benefit pension plan for Ontario's municipal employees said all of its major asset classes performed well for the year. Source
  • Ottawa vows legislation allowing firms to settle corporate corruption

    Economic CTV News
    OTTAWA -- The Canadian government is vowing to introduce legislation for corporate wrongdoing that could help SNC-Lavalin Group Inc. address criminal charges. The government says deferred prosecution agreements (DPA), which were called for in public consultations last fall, will be another tool used by judges to hold companies accountable. Source
  • TD Bank stops allowing customers to use credit cards to buy cryptocurrency

    Economic CTV News
    TORONTO -- TD Bank says it is taking a pause on allowing customers to use its credit cards to buy cryptocurrency. The big bank says it made the decision to conduct a review and assessment of the evolving market. Source
  • Auto sales to dip in most provinces, led by Ontario's 3.1% drop, Scotiabank says

    Economic CBC News
    Scotiabank says that slower job creation and weaker gains in household wealth will likely contribute to softer Canadian sales of cars and light trucks this year. That would put an end to a five-year string of growth that included a record high 2.04 million vehicles sold in 2017. Source