Valeant Pharmaceuticals (VRX) Stock Down on Investigation Request, Jim Cramer

“His motivation is the same as one who runs into a crowded theater and falsely yells fire”, Pearson said of Left’s report. They alleged that Left intentionally designed the report to frighten the company’s shareholders to drive down the price of the stock so he could make money from his short selling. Those who agree could be helping the world prepare for the next potentially deadly disease pandemic as well as helping scientists who are now desperate to plug gaps in knowledge left by previous missed opportunities. The company said Monday that it was “not clear” whether the email issue violated any provision of the agreement between Valeant and Philidor.

A spokeswoman for Valeant declined to comment.

As BioPharma Dive reported in our initial explainer on the Valeant affair last week, Citron has made bombshell claims regarding Valeant’s relationship with a network of specialty pharmacies, including Philidor Rx.

The company, once a darling of investors, has been hit with allegations of fraud by short-sellers, and its shares have been steadily losing ground, falling from a high of $263 on August. 5 to $119 on Friday.

Pearson said Valeant follows the law as well as accounting and disclosure rules, adding he would not hesitate to take action if he finds violations.

Valeant Pharmaceuticals is forming a committee to delve into the drug company’s relationship with the specialty pharmacy Philidor, which was the target of a scathing research report last week. RBC Capital reissued an “outperform” rating and issued a C$250.00 price target (down from C$279.00) on shares of Valeant Pharmaceuticals Intl in a research report on Tuesday, October 20th.

Valeant said that Philidor was considering looking to other drugmakers to expand its business model, and the purchase option was meant to stabilize its ties to the distributor. R&O claims that it has no idea why Valeant would invoice it for $69 million, and that it has no relationship with Valeant.

In a statement ahead of the call, Valeant said that net sales recognized through Philidor represented about 7 percent of its total consolidated net revenue of $2.79 billion for the quarter ended September 30.

What is the relation between Valeant and Philidor, is now a question being asked by many. After spending seven years building Valeant through serial acquisitions, the CEO found himself responding to questions about the company’s accounting, pricing and business practices that have sent shivers through the industry and the stock market. This throws a few light on complex means which a few of the drug companies use to sell their expensive drugs.

2012: Valeant buys Medicis Pharmaceutical Corp for $2.6 billion, acquiring anti-wrinkle medicines and facial fillers that compete with Allergan Inc’s market-leading portfolio.

They do not own Philidor but they run Philidor’s financials through Valeant?

As criticism mounts over its business practices, multinational drug company Valeant Pharmaceuticals will hold a conference call Monday morning, in an effort to persuade Wall Street not to bail on its stock. Pearson also stressed that Valeant still only holds the option to purchase Philidor. To pass muster with regulators, Philidor employees had to sign documents that said they had never been affiliated with a pharmacy that had had its license denied in the state.

Valeant released a 90-page presentation to go with the conference call.