UPDATE 1-Valeant shares sink for second straight day

Mon Feb 22, 2016 5:39pm EST
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(Adds reasons for stock selloff, updates share price)

Feb 22 (Reuters) - Shares of Valeant Pharmaceuticals International Inc slumped about 18 percent on Monday, the second consecutive day of steep declines, wiping out more than $6 billion in the Canadian drugmaker's market value since Thursday.

The stock, which closed down about 11 percent in regular trading, extended losses by as much as 9 percent after the Wall Street Journal reported that Valeant was planing to restate earnings following an internal review.

The review was a response to concerns about the conduct of a specialty pharmacy called Philidor that distributed a number of Valeant products, it added.

The earnings restatement was related to sales by Valeant to a distributor, the Journal said.

Valeant's stock closed down $9.07 at $75.92 on Monday. It ended 9.7 percent lower on Friday, after Wells Fargo started coverage on the company with an "underperform" rating.

"We believe the Valeant board and management have made decisions that may have put Valeant at significant business and reputational risk," Wells Fargo analyst David Maris wrote.

The stock was also pressured by widespread concerns about Valeant's failure to say when it would release calendar 2015 earnings, investors said.

More than 40 percent of investors expect Valeant to announce earnings in the first week of March, and nearly 30 percent expect it by next Monday, according to a survey conducted by Evercore.   Continued...