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Valeant may have to restate revenues: WSJ
[OTTAWA] Embattled pharmaceutical company Valeant may have to rejig its financial results before it reports its fourth quarter earnings next week, the Wall Street Journal reported Monday.
Citing people with knowledge of an internal review of the Quebec-based company's business practices, the newspaper said Valeant should not have booked revenue when its drugs were shipped to a distributor in late 2014 and early 2015.
Pharmaceutical companies are typically allowed to treat such shipments as revenue but the sales may require a different accounting treatment because of Valeant's close ties to the distributor.
The company's board is reportedly considering the issue.
Valeant has endured months of criticisms and hits to its share price over its drug pricing and distribution policies.
While rejecting accusations that it engaged in deceptive practices, Valeant cut ties in October with mail-order pharmacy Philidor Rx Services LLC.
Their partnership had seen Philidor aggressively market Valeant's more expensive drugs over cheaper generics preferred by insurers, which caught the attention of US lawmakers and investigators now looking into its pricing.
Its shares have fallen by more than 65 per cent since mid-2015. In New York, the stock closed down 10.68 per cent for the day Monday at US$75.91.