Valeant Shares Drop with News of Possible Earnings Restatement

Valeant Pharmaceuticals International Inc, based in Laval, Canada has been facing a tough time since questions were raised regarding its accounting practices and its relation with Philidor Rx Services LLC, a mail-order pharmacy service provider.

People who have knowledge of the matter said, Valeant is expected to restate some of its past earnings limited to results from 2014 and 2015.

An internal review at Valeant will probably prompt the restatement of the past financial results but is not expected to involve a noteworthy portion of the company's revenue.

Valeant for some time has been making an effort to repair its image with the investors and regulators and has lost its share values.

Since Friday, Valeant's shares have dropped greater than nineteen percent, partially as the investors are concerned that the company has not yet announce the time when it is expected to report its earnings for the Q4 and also for the full year, 2015.

On Monday, the company's shares took another hit with the news of the revision dropping seven percent or more.

Since August, the company's shares slipped approximately seventy percent with the ongoing political scrutiny of the pricing practices, questions related to relation with Philidor.

Since December, Mike Pearson, Valeant's CEO has been on medical leave and in the mean time the company has been run by interim CEO Howard Schiller.