UPDATE 1-Valeant to restate results after Philidor review

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Feb 22 (Reuters) - Valeant Pharmaceuticals International Inc (N:VRX)
VRX.TO said it would restate its financial results for 2014
and 2015 after identifying some sales to Philidor that should
have been recognized when products were dispensed to patients.
Shares of Valeant Pharmaceuticals International Inc VRX.N
VRX.TO slumped about 18 percent on Monday, the second straight
day of steep declines, wiping out more than $6 billion of the
Canadian drugmaker's market value since Thursday.
The company "preliminarily identified certain sales to
Philidor during 2014, prior to Valeant's entry into an option to
acquire Philidor, that should have been recognized when product
was dispensed to patients rather than on delivery to Philidor,"
Valeant said in a statement on Monday.
Valeant, whose stock was also pressured by concerns about
its failure to say when it would release its 2015 earnings, said
it would hold a conference call on Feb. 29 to discuss results
for the fourth quarter.
The company said it would delay filing its 10-K as it awaits
completion of the review of related accounting matters.
Valeant said the restatement will reduce its reported 2014
GAAP earnings by about 10 cents per share and increase 2015 GAAP
earnings by about 9 cents per share.
The company also said about $58 million of revenues included
in the second half of 2014 should not have been recognized on
delivery of the product.
Valeant cut ties with specialty pharmacy Philidor Rx
Services in October after it was revealed Philidor used
aggressive tactics to try to increase insurer reimbursement,
mostly for dermatology drugs to help the Canadian drugmaker
inflate revenue.
Valeant was pummeled late last year when questions about its
business and accounting practices spooked investors, with the
stock shedding 70 percent in 2015 from its August high of
$263.81. The stock is down 25 percent this year, as of Monday's
close.