Valeant Shares Crater On Worry About Earnings, Default

Valeant Pharmaceuticals International Inc. shares cratered Tuesday, after the company slashed earnings and sales guidance, and warned it could face an "event of default" by April if it fails to file an already delayed annual report. The stock was down 47% in early afternoon trade at $36.25, placing it below the $50 level that short seller Andrew Left predicted it would fall to back in October. At the time, the stock was still trading close to $200. It set a closing high of $262.52 on August 5 of 2015. Valeant has been hit by a series of scandals over its drug pricing and accounting practices, and is under investigation by the SEC.