Valeant shares tumble 20 percent, retrace ground to 2013 levels

Thu Nov 5, 2015 10:55am EST
 
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NEW YORK Nov 5 (Reuters) - Valeant Pharmaceuticals International Inc shares fell as much as 20 percent on Thursday, building on weeks of steep losses over concerns about its ties to specialty pharmacy Philidor Rx Services, which is accused of improperly boosting sales of Valeant drugs.

Valeant's U.S.-traded shares hit their lowest since May 2013, falling as low as $73.37. At midmorning, the stock was down 17.3 percent to $75.89.

Volume also spiked as the stock hit its lowest in more than two years, with turnover intensifying after it slipped under $80.

The Wall Street Journal published a story on Thursday detailing the thinking of one of Valeant's biggest investors, Bill Ackman, who runs Pershing Square Capital Management. He has a more than 6 percent stake in the company.

In the report, Ackman said he had told a Valeant board member that Valeant's longtime chief executive officer, Michael Pearson, may have to go.

Ackman was not immediately available for comment. Valeant representatives could not be immediately reached for comment. (Reporting by Caroline Humer; Editing by Jeffrey Benkoe)