Valeant Calls Short Seller's Report Erroneous After Stock Falls
- Drugmaker says no benefit when pharmacies hold inventory
- Shares recover ground after falling as much as 40 percent
Valeant Calls Short Seller's Report 'Erroneous'
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Valeant Pharmaceuticals International Inc. said a short seller’s allegation that it recorded fake sales to phony customers was “erroneous,” mounting a defense of its relationship with specialty pharmacies that failed to assuage investors.
The drugmaker responded after a report by Citron Research that sent its shares down as much as 40 percent on Wednesday. The shares recovered some ground after the company’s statement, and closed at $118.61 in New York. That still represented a 19 percent drop, the company’s biggest one-day decline since 2011.