As allegations of fraud rock Valeant Pharmaceuticals (NYSE:VRX), Roddy Boyd of the Southern Investigative Reporting Foundation, is being given some of the credit for raising the red flag on the company which in turn prompted short seller Andrew Left and his firm Citron Research to issue the report titled: “Valeant: Could This Be the Pharmaceutical Enron?”
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“All I saw were just a question that had another question- why is a company [Valeant] that size, with that profit and that high-profile doing these ridiculous hidden revenue kind of connections… what are they doing? No one there would answer anything,” Boyd said.
Valeant held an investor call on Monday with a team of 10 executives led by J. Michael Pearson, chairman and chief executive officer, and defended itself with materials including a 90-page presentation.
When asked if this made him feel calmer about the questions he had Boyd said,
"In my mind it made it much worse.” He added, “I very much think that they’re going to have to, at the end of the day like all companies, write a large check. It’s just I’m not sure to who and I’m not sure when.”
Valeant has stated the claims made by Citron and Left are completely untrue.
The stock has lost 31% of its value over the past five days.