BUZZ-Citron report knocks off more than a quarter of Valeant's value

Wed Oct 21, 2015 11:24am EDT
 
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(Adds link to report)

** Valeant Pharmaceuticals' US listing sent on a vicious slide by report from short-seller Citron Research which questions company's distribution relationships

** Valeant's US-listed shares, which were briefly halted for volatility, last down more than 29 pct and are on track for their worst day ever

** Nearly $3 bln worth of shares traded making Valeant the actively traded stock in the US

** Valeant, which was Canada's most valuable company earlier this year worth nearly $90 bln, sees its Toronto-listed shares down more than 30 pct

** On top of recent scrutiny on the company's high drug pricing, Citron, a firm run by Andrew Left, cites Valeant's distribution relationships with specialty pharma companies such as Philidor Rx Services

** Citron cites report about court filing made by a company called R&O Pharmacy, filed with the California District Court in Sept, in which the regional pharmacy claims it received an improper demand for payment from Valeant to the tune of $69 mln

** Link to Citron report: bit.ly/1LLk562

** Valeant had 2.1 pct of shares outstanding sold short as of Sept. 30 (RM: sinead.carew.thomsonreuters.com@reuters.net; RM: saqib.ahmed.thomsonreuters.com@reuters.net)