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VRX Halted Down 40%, Issues Statement, Says "Citron's Report Is Erroneous"

Tyler Durden's picture




 

Valeant Pharma is halted for the 4th time today, this time for news pending, as the stock has lost 40% of its value since the open.

The recent bounce, on what David Faber said may be the company buying back stock, just fizzed: 

VRX Headlines:

  • VALEANT: ALL PHILIDOR SHIPMENTS NOT RECORDED IN TOTAL NET REV
  • VALEANT:NO SALES BENEFIT FROM ANY INVENTORY HELD AT SPECIALTIES
  • VRX: INVENTORY AT PHILIDOR INCLUDED IN INVENTORY BALANCES
  • VALEANT: TIMING OF REV RECOGNITION VIA PHILIDOR IS 'DELAYED'
  • VALEANT SAYS $69M SHIPPED BY VALEANT TO R&O NOT RECORDED REV.

Nomura says - do not worry...

  • VALEANT PHILIDOR CONCERN LIKELY MISINFORMATION, NOMURA SAYS

But the rest of the Biotech world is in full panic denial mode...

  • HORIZON PHARMA DOESN'T OWN/HOLD STAKE IN SPECIALTY PHARMACIES
  • ALLERGAN: NO OWNERSHIP OR AFFILIATION W/ ANY SPECIALTY PHARMACY
  • ENDO’S USE OF SPECIALTY PHARMACY IS ‘LIMITED,’ RBC SAYS

Who can blame them.

And here, finally, is the long overdue Valeant Statement, in which the company says the Citron report is "erroneous":

Valeant Pharmaceuticals Responds To Erroneous Report

 

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today responded to recent accusations made regarding its financial reporting and operations. 

  • Philidor Rx Services is a pharmacy licensed in Pennsylvania and also provides back-end services, including call center, claims adjudication, IT and logistics support, as well as compliance/HIPPA regulation guidance, to other pharmacies, including R&O Pharmacy. This includes a common call center phone number serviced by Philidor for the Philidor network pharmacies.
  • All shipments to Philidor and other pharmacies in the Philidor pharmacy network, including R&O, are not recorded in Valeant's consolidated net revenue.  Sales are recorded only when the product is dispensed to the patient.  All sales to Philidor and Philidor network pharmacies are accounted for as intercompany sales and are eliminated in consolidation.   They are not included in the consolidated financial results that Valeant reports externally.
  • Any inventory at pharmacies in the Philidor pharmacy network are included in Valeant's consolidated inventory balances – there is no sales benefit from any inventory held at these specialty pharmacies and inventory held at the Philidor network pharmacies is reflected in Valeant's reported inventory levels.
  • The $69 million at wholesaler acquisition cost of products shipped by Valeant to R&O were not recorded as revenue to Valeant when shipped to R&O.  When R&O dispensed those products Valeant recognized the net realized amount due from patients and payors (approximately $25 million) and reduced the associated inventory from Valeant's balance sheet.  In this case, we estimate the net amount of revenue for the $69 million at WAC would be approximately $25 million.
  • The timing of our revenue recognition by selling through the Philidor pharmacy network is actually delayed when compared to selling through the traditional wholesaler channel.

Will this be enough to stop the bleeding, both in the Valeant market cap and Bill Ackman's AUM? Find out in moments when the company is unhalted.

For now, with VRX still halted, traders are bidding IBB higher on hope this "denial" stems the carnage...

 

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Wed, 10/21/2015 - 13:37 | 6694938 Dubaibanker
Dubaibanker's picture

Canada's Enron!

Bring it on!

Wed, 10/21/2015 - 13:40 | 6694963 kliguy38
kliguy38's picture

BTFD........It will NEVER fail you.....buy buy buy

Wed, 10/21/2015 - 13:53 | 6695023 ZerOhead
ZerOhead's picture

Valeant claims Citron's report is a lemon...

Wed, 10/21/2015 - 14:41 | 6695210 Bay of Pigs
Bay of Pigs's picture

BlowHorn: " Valeant well off the lows..." lol

Wed, 10/21/2015 - 16:04 | 6695622 Viffer
Viffer's picture

Dead cat bounce

Wed, 10/21/2015 - 17:26 | 6695979 walküre
walküre's picture

somehow, somewhere there has to be a link to Ackman

Wed, 10/21/2015 - 13:41 | 6694973 aVileRat
aVileRat's picture

https://www.youtube.com/watch?v=sO_QntXc-c4

:)

Ok, enough showboating. back to work everyone.

 

Wed, 10/21/2015 - 13:41 | 6694946 THE COIN
THE COIN's picture

I like My Canary medium well with a strong Cabernet.

Wed, 10/21/2015 - 13:46 | 6694996 Winston Churchill
Winston Churchill's picture

Good choice, the cabernet covers the coal dust.

Wed, 10/21/2015 - 13:41 | 6694976 KnuckleDragger-X
KnuckleDragger-X's picture

Now the question that must not be asked is "whose holding the shit paper?"....

Wed, 10/21/2015 - 13:44 | 6694979 clade7
clade7's picture

What?

Some Poor maple syrup eating, slap shotting, birchbark asswiping, beaver eating, seal clubbing motherfucker didnt have enough Loonys to cover the co-pay?

Eh?

Wed, 10/21/2015 - 14:52 | 6695282 Toxicosis
Toxicosis's picture

I resemble that remark, in it's entirety.

Wed, 10/21/2015 - 13:42 | 6694980 Oldwood
Oldwood's picture

I fail to understand why this is an issue. After spending years watching this casino circus in action, it seems the ultimate in hypocrisy to point out fraud as any reason to discount stock prices. I mean, what up with that?

Wed, 10/21/2015 - 13:47 | 6695003 jamochavez
jamochavez's picture

agreed--but maybe this is the start of waking the masses to the fraud and ponzi of the equity markets that they "invest in" for their retirement.  Or we just go back up and continue the charade a while longer.

Wed, 10/21/2015 - 13:43 | 6694983 ShrNfr
ShrNfr's picture

 

  • 21-Oct-2015 13:39 - VALEANT PHARMACEUTICALS RESPONDS TO ERRONEOUS REPORT
  • 21-Oct-2015 13:39 - VALEANT PHARMACEUTICALS INTERNATIONAL INC VRX.TO SAYS RESPONDS TO "RECENT ACCUSATIONS MADE REGARDING ITS FINANCIAL REPORTING AND OPERATIONS"
  • 21-Oct-2015 13:40 - VALEANT PHARMACEUTICALS INTERNATIONAL - 69 MLN AT WHOLESALER ACQUISITION COST OF PRODUCTS SHIPPED BY VALEANT TO R&O WERE NOT RECORDED AS REVENUE
  • 21-Oct-2015 13:40 - VALEANT PHARMACEUTICALS - ANY INVENTORY AT PHARMACIES IN PHILIDOR PHARMACY NETWORK INCLUDED IN VALEANT'S CONSOLIDATED INVENTORY
  • 21-Oct-2015 13:40 - VALEANT PHARMACEUTICALS -ALL SHIPMENTS TO PHILIDOR, OTHER PHARMACIES IN PHILIDOR PHARMACY NETWORK, ARE NOT RECORDED IN CO'S CONSOLIDATED NET REVENUE
  • 21-Oct-2015 13:40 - VALEANT PHARMACEUTICALS-TIMING OF REVENUE RECOGNITION BY SELLING VIA PHILIDOR HARMACY NETWORK DELAYED COMPARED TO SELLING VIA WHOLESALER CHANNE
Wed, 10/21/2015 - 13:43 | 6694985 oddjob
oddjob's picture

Halt will be forever and nobody settles.

Wed, 10/21/2015 - 14:18 | 6695116 MadVladtheconquerer
MadVladtheconquerer's picture

Might as well go for a soda:

https://www.youtube.com/watch?v=MXnTbmPxv5g

Wed, 10/21/2015 - 13:45 | 6694993 jakesdad
jakesdad's picture

reverse pump n dump?  a "dip & grip", "short & snort", "plunge & gorge", "drop & hop", "dump & jump", "fry & buy", "fear & spear"?

 

if fed can't drive the market any higher I think we've just found wall st's business model for next decade!

Wed, 10/21/2015 - 14:03 | 6695066 Apocalicious
Apocalicious's picture

Sell & yell. 

Wed, 10/21/2015 - 13:46 | 6694997 Dr. Engali
Dr. Engali's picture

Cramer says buy at $200. Am I too late?

 

 

 

http://www.thestreet.com/story/13055068/1/jim-cramer-says-investors-shou...

Wed, 10/21/2015 - 14:18 | 6695117 FrankDieter
FrankDieter's picture

Yeah, too late.

Wed, 10/21/2015 - 16:05 | 6695628 Viffer
Viffer's picture

You were waiting to see what Gartman was going to recommend, weren't you?

Wed, 10/21/2015 - 13:48 | 6695005 RougeUnderwriter
RougeUnderwriter's picture

BUY NOW

Wed, 10/21/2015 - 13:55 | 6695034 SillySalesmanQu...
SillySalesmanQuestion's picture

Go to zero.

Wed, 10/21/2015 - 13:56 | 6695039 buzzsaw99
buzzsaw99's picture

if you buy at a 40% discount and it goes back up the trade will be busted. if it keeps going down the trade will stand. this market is a no win scenario except for those connected few.

Wed, 10/21/2015 - 14:07 | 6695076 Depression is Coming
Depression is Coming's picture

Trades only busted if Goldman is on the other side of your trade.. Wish I could get my losing trades busted too..

Wed, 10/21/2015 - 13:56 | 6695040 Dr. Engali
Dr. Engali's picture

Look at that pig rip higher. Shorts late to the game are getting their assholes ripped.

Wed, 10/21/2015 - 14:23 | 6695132 MadVladtheconquerer
MadVladtheconquerer's picture

Yaaa, shorbusters have pretty big joints.

Wed, 10/21/2015 - 14:01 | 6695052 FrankDieter
FrankDieter's picture

Ackman got a good ass drilling today !  Down $1.3B so far motherfuckers.

Wed, 10/21/2015 - 14:03 | 6695063 Debeachesand Je...
Debeachesand Jerseyshores's picture

WTF!!!!

Wed, 10/21/2015 - 14:09 | 6695081 taopraxis
taopraxis's picture

When trading, hope is not a plan. It is worse than nothing...

Wed, 10/21/2015 - 14:11 | 6695089 Bill of Rights
Bill of Rights's picture
Russian central bank accumulates another 34.2 tonnes of gold

http://lawrieongold.com/2015/10/21/russian-central-bank-accumulates-another-34-2-tonnes-of-gold/

 

Russia continues to amass more gold in its reserves with the purchase of another 34.2 tonnes in September, bringing its total to around 1,353 tonnes – or around 13% of its total foreign exchange reserve figure.  This is Russia’s second highest monthly total purchase in six years and represents yet another indicator of its continuing desire to downplay the significance of the U.S. dollar holding in its overall forex reserve make-up.

Wed, 10/21/2015 - 14:49 | 6695238 dumb_funded
dumb_funded's picture

Bill of Rights, is there a way to know price per/oz?

Wed, 10/21/2015 - 15:30 | 6695365 dumb_funded
dumb_funded's picture

"Russia’s central bank has been forced to step up its gold buying this year to absorb domestic production ...Most Russian gold mine production is sold to domestic commercial banks, such as Sberbank or VTB, which can then sell the metal on to either the central bank or to foreign banks.

And as Pirrong points out, the central bank can pay for that gold in rubles meaning that it can simply print the money to boost those reserves."

 

What a nasty, nasty game.


Wed, 10/21/2015 - 15:54 | 6695579 alphahammer
alphahammer's picture

 

No because there is NO way to know what ANY cetral bank actually buys or sells. Period.

FYI. Central bank holding of gold to include buys and sells are some of the most top secret information on this planet. This because, the central banks don't want anyone front running their fiscal policy or letting other soverigens know exactly what their central bank policy is so that they can't be gamed.

Beware ANY second,third,fourth party "company" telling you exactly what a central bank is doing re gold. It should be considered complete bullshit.

---

However transparency in the reporting of global gold holdings can be obscure – even for those like China and Russia which are reporting month by month official changes.  Most of the gold holders in the table above as the central banks of the countries concerned do not allow audits of their gold holdings and many have reported zero change for a number of years. 

Wed, 10/21/2015 - 14:11 | 6695091 Colonel Klink
Colonel Klink's picture

Is this like Dick Fuld saying he's going to burn the shorts?

Another Lehman moment?

Wed, 10/21/2015 - 14:19 | 6695123 FrankDieter
FrankDieter's picture

vrx could be legit, Citron does not do research just talking their book.

Wed, 10/21/2015 - 14:35 | 6695178 orangegeek
orangegeek's picture

Another fraud out of Quebec, Canada, the mafia and bike gang capital of North America.

 

How could that be???  I don't get it!!!

Wed, 10/21/2015 - 15:13 | 6695399 MadVladtheconquerer
MadVladtheconquerer's picture

VRX is now down only 15% after having been off as much as 40%. 

Beware the 3:30 ramp.  booooooohahahahahaahahahahahahahahahahahahahaha

Wed, 10/21/2015 - 17:35 | 6696021 globalintelhub
globalintelhub's picture

Anyone who lost today can join class action lawsuit to recover loss https://steinmeyerlaw.com/valeant-pharmaceuticals-vrx/ 

Do NOT follow this link or you will be banned from the site!