U.S. Securities and Exchange Commission investigating Valeant

LAVAL, Que. -- Valeant Pharmaceuticals said Monday it is under investigation by the U.S. Securities and Exchange Commission in a previously undisclosed probe.

See Full Article

In a brief statement, the Quebec-based drugmaker confirmed it received a subpoena from the commission in the fourth quarter of 2015. The company said it would have disclosed the investigation when filing audited full-year results, but those have been delayed.

Valeant declined further comment. The commission also declined comment.

The news came as shares in the company plummeted to $94.49 on the Toronto Stock Exchange, a drop of $15.34 or nearly 14 per cent. At its peak last summer, the stock was trading above $346.

The announcement Monday is the latest setback for Valeant. The company has been under scrutiny for months amid allegations of drug price gouging, accusations it has denied, and concerns about a previously undisclosed relationship with a U.S. mail-order pharmacy -- an affiliation it later severed.

It is one of several companies under investigation as the U.S. Congress looks at price increases for certain specialty drugs.

The company's fourth-quarter financial report was due to be released earlier Monday. But the return this past weekend of CEO Michael Pearson from medical leave delayed the release of the report.

Pearson, who had been off the job since mid-December due to pneumonia and complications from the treatment, said in a statement Sunday that his "immediate priority" is to rebuild relationships with business partners, regulators and government representatives.

"I realize that recent events are disappointing to everyone and it is my responsibility to set the appropriate tone for the organization," Pearson said in the statement.

"I will focus on the retention and enhancement of our management teams and employee groups around the world and ensure that we maintain a culture that adheres to the highest ethical standards."

Valeant also withdrew previously announced estimates of what it expects to achieve in the 2015 fourth quarter ended Dec. 31 and for the 2016 financial year.

The company announced last week that its audited results for 2015 would be delayed because it had to restate its financial reports for 2014 and 2015 due to errors in the way it recorded revenue from sales through Philidor, the Pennsylvania mail-order pharmacy with whom it was once affiliated until their business relationship ended in October.

Valeant didn't announce a new date for its financial report but said it would be "in the near term."



Advertisements

Latest Economic News

  • Lessons the tooth fairy can't teach: Allowances can help kids learn financial savvy

    Economic CBC News
    Robin Taub paid her two kids a weekly sum when they were younger in an effort to help teach them basic money skills. Now, they're living away from home at university, managing a budget, and friends tease them for being money-smart kids, she says — a riff on the title of her book, A Parent's Guide to Raising Money-Smart Kids. Source
  • More than 2M knives recalled after reports of blades breaking, injuries

    Economic CTV News
    The kitchenware company Calphalon Contemporary Cutlery is recalling more than two million knives and knife sets in Canada and the United States after reports of blades breaking during normal use or when they are dropped, posing a risk of lacerations. Source
  • Conference Board sees modest economic growth in 2017

    Economic CBC News
    The national economy should seen see a slight pick-up this year, the Conference Board of Canada said in a new report out Thursday. The independent research group said it sees overall growth of 1.9 per cent this year, up from the 1.3 per cent it expects will be reported for last year. Source
  • Delta Airlines wins right to appeal ruling in complaint involving obese passengers

    Economic CBC News
    The Supreme Court of Canada has allowed Delta Airlines to appeal a ruling involving a complaint by a Nova Scotia man alleging the airline discriminates against obese passengers. The court granted the company's appeal request Thursday. Source
  • SCC to hear appeal involving policy that advocate says discriminates against obese

    Economic CTV News
    OTTAWA -- The Supreme Court of Canada has granted Delta Air Lines leave to appeal a ruling that found a Halifax passenger rights advocate should be able to stand up for obese people even though he isn't overweight himself. Source
  • Trump taps CEOs of 5 job-offshoring firms for input on how to create jobs in America

    Economic CBC News
    President Donald Trump, who has vowed to stop U.S. manufacturing from disappearing overseas, will seek job-creation advice on Thursday from at least five companies that are laying off thousands of workers as they shift production abroad. Source
  • Trump taps CEOs of 5 job-offshoring firms for input on how to create jobs

    Economic CBC News
    President Donald Trump, who has vowed to stop U.S. manufacturing from disappearing overseas, will seek job-creation advice on Thursday from at least five companies that are laying off thousands of workers as they shift production abroad. Source
  • Loblaw fourth-quarter profit up 57% to $201M

    Economic CBC News
    ?Loblaw had $11.13 billion of revenue and a $201 million net profit in the fourth quarter, according to earnings announced Thursday morning. The profit amounted to 50 cents per share. The net profit was up 57 per cent or $73 million from a year earlier, while revenue was up $265 million or 2.4 per cent. Source
  • Loblaw Q4 profit up 57 per cent to $201M

    Economic CTV News
    BRAMPTON, Ont. -- Loblaw had $11.13 billion of revenue and a $201 million net profit in the fourth quarter. The profit amounted to 50 cents per share. The net profit was up 57 per cent or $73 million from a year earlier, while revenue was up $265 million or 2.4 per cent. Source
  • CIBC grows first-quarter net income to $1.41B

    Economic CBC News
    ?CIBC increased its first-quarter net income to $1.41 billion, up from $982 million a year ago, according to earnings announced Thursday morning. The quarterly earnings amounted to $3.50 per diluted share, compared with $2.43 per diluted share during the same period last year. Source