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Valeant Plummets on Allegation of Enron-Like Accounting

  • Citron Research, run by short seller, publishes report
  • Drugmaker has been focus of debate over price increases
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Valeant Calls Short Seller's Report 'Erroneous'

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Valeant Pharmaceuticals International Inc. shares took a beating, falling more than 30 percent, after a stock-commentary site run by a short seller accused the company of an Enron-like strategy of recording fake sales by using phony customers.

Citron Research said Valeant is using a specialty pharmacy called Philidor RX Services to store inventory and record those transactions as sales. “Is this Enron part deux?” the report said. “These similarities are too close to ignore.”