Valeant Shares Fall Yet Again As Company Holds Conference Call

Shares of Valeant were trading lower by more than 10 percent early Monday morning ahead of a scheduled 8AM conference call but shares rebounded slightly and were lower by just over three percent by 8:20. Valeant's conference call offered management an opportunity to explain its relationship with specialty pharmacies and its accounting relationship following recent allegations of wrongdoing. The Wall Street Journal

over the weekend that Valeant's relationship with Phildor, a specialty pharmacy, is "more intertwined than thought." The publication noted that an apparent Phildor employee named Bijal Patel used an alter ego name when communicating with his peers via email. In fact, Patel was among several Philidor employees who "went by one name in person and another in emails." The Wall Street Journal cited "three former employees" who also claimed that Patel and the other people weren't actually employed by Philidor, despite communicating with a Philidor e-mail address. The sources further claimed that they were in fact employees of Valeant. "The use of alternative names by workers at Philidor is one of a number of new details emerging about the relationship between Valeant and the network of specialty pharmacies it uses to distribute drugs," The Wall Street Journal argued. Valeant reiterated its position on Monday that it's relationship with specialty pharmacies, especially Philidor, is appropriate. The company added that its revenue recognition and accounting treatment is not set up in a way to "stuff the channel" – as was alleged against the company last week. Valeant also stated that it will form an ad hoc committee to review allegations related to its business with Philidor.