Valeant Drop Ripples Through Drug Stocks
- Stocks seen as benefiting from acquisition strategies fall
- An index of 25 large-cap U.S. pharmaceuticals slumps 1.7%
Valeant Calls Short Seller's Report 'Erroneous'
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A $20 billion selloff in Valeant Pharmaceuticals International Inc. spurred a battering in drug stocks seen as sharing its taste for acquisitions, sending Mallinckrodt Plc and Endo International Plc tumbling.
Ripples spread quickly, dragging down an index of the 25 largest and most liquid U.S. pharmaceutical companies, which tumbled 1.7 percent as 21 of its members fell. Valeant’s plunge of as much as 40 percent brought the stock to its lowest level in more than two years after a stock-commentary site run by a short seller questioned its sales practices.