Valeant to update investors on operations on Tuesday

(Reuters) – Valeant Pharmaceuticals International Inc , under scrutiny for drug pricing and inflating revenue, will hold its second conference call in two weeks to allay investor concerns over its operations.

Valeant’s conference call, which will begin at 8.00 a.m ET on Tuesday, comes after tumultuous few weeks for the embattled drugmaker.

The Canadian drugmaker is the subject of a probe by federal prosecutors in New York and Massachusetts into drug pricing and patient assistance programs.

The company has also been accused by short-seller Citron Research of using specialty pharmacy Philidor Rx Services to inflate revenue, an allegation that it has denied.

However, the company has not addressed investor concerns as new reports emerge on its questionable billing practices at Philidor, which will be shutting down its operations.

“What’s important is reassuring the investors about the durability of the business,” Mizuho analyst Irina Koffler said.

Valeant Chief Executive Michael Pearson, Chief Financial Officer Robert Rosiello, Chairmen Ari Kellen and Deb Jorn, along with Corporate Controller Tanya Carro, will be on the call, Valeant said.

The company’s stock, which touched record high of $263.70 on Aug. 5, has plunged about 45 percent through Friday’s close of $78.77, since Oct. 21, when Citron published its report.

Valeant also said it intends to host an investor day and update its annual and quarterly financial outlook before the end of the year.

Shares of the company, which has a market value of $28.3 billion, were up 1 percent at $82.66 in midday trading.

(Reporting by Ankur Banerjee in Bengaluru; Editing by Savio D’Souza)

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