BUZZ-Valeant Pharmaceuticals slumps on report of criminal probe

Thu Aug 11, 2016 6:33am EDT
 
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** Embattled Canadian drugmaker's U.S-listed shares down about 10 pct at $24.60 premarket

** U.S. federal prosecutors are investigating whether Valeant defrauded insurers by hiding its relationship with specialty pharmacy Philidor, WSJ reports on Wednesday, citing people familiar with matter

** Company issues statement saying it had disclosed probe last October, and is cooperating with authorities

** Valeant cut ties with Philidor last year after it was revealed that specialty pharmacy used aggressive tactics to try to increase insurer reimbursement, mostly for dermatology drugs to help Valeant inflate revenue

** Earlier this week, Valeant said it would sell billions of dollars of non-core assets and could accept offers for its main businesses, as it works on restoring investor confidence after a year of bad news

** Up to Wednesday's close, Valeant's U.S.-listed stock had slumped about 73 pct this year