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UPDATE 2-Valeant sets earnings date, shares jump on hope for positive news

Published 2016-03-07, 12:14 p/m
© Reuters.  UPDATE 2-Valeant sets earnings date, shares jump on hope for positive news
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(Adds details, updates shares)
March 7 (Reuters) - Valeant Pharmaceuticals (NYSE:VRX) International
Inc VRX.TO VRX.N , the subject of intense scrutiny over its
business practices and pricing policies, said it would release
preliminary quarterly results and guidance on March 15, raising
hopes the company will serve up some positive news after months
of uncertainty.
Valeant's stock - which had plunged 24 percent since the
company said last week that it would delay its results, withdrew
2016 guidance and was the target of an SEC probe - rose as much
as 8.5 percent in morning trading on Monday.
The stock has shed about 77 percent of its value since
August, when it hit a record high of $263.81.
The Laval, Quebec-based company had originally been
scheduled to release its fourth-quarter results on Feb. 29.
"This stock has been so volatile ... it is possible the
company's announcement it will report Q4 earnings and update
guidance on the 15th has some investors more optimistic that
some recent fears about accounting restatements and withdrawn
guidance won't be as bad as perceived," Morningstar analyst
Michael Waterhouse said in an email to Reuters.
Reuters reported on Tuesday that a probe by the U.S.
Securities and Exchange Commission was focused on the
drugmaker's relationship with Philidor RX Services, a specialty
drug distributor that came under fire for its aggressive tactics
to increase insurer reimbursements.
Valeant has since cut ties with Philador and reached a deal
to distribute its drugs through Walgreens Boots Alliance Inc
WBA.O .
The company said the delay in releasing the results was
related to the return of Chief Executive Michael Pearson (LON:PSON) two
months after he was hospitalized for pneumonia.
"Now that I have returned, I have been working diligently to
review the business so that I can share our latest performance
and outlook with shareholders," Pearson said in a statement on
Monday.
Valeant said it would hold a conference call after releasing
its results.
The company said this month it would restate results for
2014 and 2015 after identifying some sales to Philidor that
should have been recognized when products were dispensed to
patients, not when they were delivered to the distributor.

Valeant's Toronto-listed shares were up 8 percent at C$88.15
at midday, while its U.S.-listed shares trading at $66.43.

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Graphic on Valeant share performance http://link.reuters.com/rup85w
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