| | 26 Oct 2015 09:25 ET |  |
(Adds details on share activity, board review) By Caroline Humer and Euan Rocha Oct 26 (Reuters) - Drugmaker Valeant Pharmaceuticals International Inc said on Monday it has asked U.S. securities regulators to investigate a short-seller's "completely untrue" allegation that the company used its ties with a specialty pharmacy to inflate revenue, and said it would conduct a review of its pharmacy network. Laval, Quebec-based Valeant fired back in a conference call with investors and analysts after the report by Citron Research, run by Andrew Left, hammered Valeant's stock last week. "His motivation is the same as one who runs into a crowded theater and falsely yells fire. He wanted people to run," Valeant Chief Executive Mike Pearson said. "He intentionally designed the report to frighten our shareholders to drive down the price of our stock so he could make money for his short-selling." Valeant, whose U.S.-listed shares were down as much as 14 percent in premarket trading before paring losses to 6 percent, also said a board review had found that the company was in compliance with the law on revenue recognition from drugs sold through the specialty pharmacy, Philidor. It said it would set up an ad-hoc committee to look into allegations related to the company's association with specialty pharmacy distributor Philidor. Valeant's lead director Robert Ingram said the company's board has "complete and total faith" in Pearson. Valeant's link to Philidor and its option to buy the company came under scrutiny after a New York Times report said that Valeant and other drugmakers were using specialty drug distributors to circumvent barriers to raising prices. Valeant has said it properly accounts for sales through its pharmacy partners and only books revenue once one of its medicines reaches a patient. Citron's Andrew Left did not immediately respond to a request for comment. (Reporting by Caroline Humer in New York, Euan Rocha in Toronto and Rod Nickel in Winnipeg, Manitoba; additional reporting by Michael Flaherty in New York; Editing by Nick Zieminski) |