Canadian pharmaceutical-company Valeant is hosting a conference call Monday to address allegations made by a short-selling research firm.
The participants on the call include CEO Michael Pearson, general counsel Robert Chai-Onn, Chief Financial Officer Robert Rosiello, and a number of board and risk-committee members.
Ten Valeant executives will be on the call.
California-based Citron Research published a report Wednesday that asked if Valeant was operating as an Enron-like fraud.
Citron’s report focuses on a mysterious relationship the company has with Philidor, a specialty pharmacy that distributes prescription drugs for Valeant. Valeant is the only supplier to Philidor, and it also has an option to buy the company.
Citron is accusing Valeant of using Philidor, and an unknown number of specialty pharmacies like it, to generate fake invoices so it can book revenue for sales that never happened. Citron’s editor-in-chief, Andrew Left, appeared on Bloomberg TV Thursday to discuss his report, simply telling investors that it doesn’t matter what he says: Do your own homework.
Valeant’s share price took a big hit following this report, losing 19% Wednesday after falling 40% at one point during the day. The stock was last down 14% Thursday at about $102. In August, the stock traded above $250.
Shares have fallen more than 42% since the market opened Monday.
Here’s the full release from the company:
LAVAL, Quebec, Oct. 22, 2015 /PRNewswire/ – Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today announced that it will host a conference call and a live webcast along with a slide presentation on Monday, October 26, 2015 at 8:00 a.m. ET (5:00 a.m. PT). The purpose of the call will be to lay out the facts including allegations made against our company regarding our relationship with Philidor and R&O, our accounting practices, and channel stuffing that contain numerous errors, unsupported speculation and incorrect interpretations of facts and circumstances to the detriment of the shareholders of the Company.
Participants on the call will include:
- Norma Provencio, Board Member, Chairman Audit and Risk Committee Theo Melas-Kyriazi, Board Member, Member Audit and Risk Committee Katharine Stevenson, Board Member, Member Audit and Risk Committee Howard Schiller, Board Member, former Chief Financial Officer Robert Hale, Board Member, Partner of ValueAct Capital J. Michael Pearson, Chairman and Chief Executive Officer Robert Chai-Onn, General Counsel Robert Rosiello, Chief Financial Officer Tanya Carro, Corporate Controller Ari Kellen, Company Group Chairman
“We look forward to our call on Monday where we will address and refute recent allegations,” stated J. Michael Pearson, chairman and chief executive officer.
The dial-in number to participate on this call is (877) 876-8393, confirmation code 67537440. International callers should dial (973) 200-3961, confirmation code 67537440. A replay will be available approximately two hours following the conclusion of the conference call to November 2, 2015, and can be accessed by dialing (855) 859-2056 or (404) 537-3406, confirmation code 67537440.
The webcast and slide presentation will be hosted in the investor relations section of its corporate website at www.valeant.com. Participants should allow approximately five to ten minutes prior to the call’s start time to visit the site and to download any streaming media software needed to listen to the webcast. An online archive of the webcast will be available following the end of the live call in the webcast archive portion of the investor relations section at www.valeant.com.