Shares of Valeant Pharmaceuticals VRX are down more than 25 percent following reports from Citron Research and SIRF that the company is engaged in questionable sales and accounting practices.
The crux of Citron Research's short thesis is that R&O Pharmacy, who filed for relief on a $69 million invoice from Valeant, is likely owned by Philidor Rx, a company Valeant has the right to purchase. If true, this raises concerns about Valeant's sales and inventory figures.
An employee of Philidor confirmed to Benzinga that R&O Pharmacy is owned by Philidor. Similarily, an employee of West Wilshire Pharmacy, a similar pharmacy that Citron raised concern about, confirmed to Benzinga that it is owned by Philidor.
Wednesday afternoon Valeant published a response to Citron's and SIRF's reports, but did not clarify the relationship with Philidor.
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