Valeant's Stock Takes Sharp Turn Lower After Business Update

Valeant Pharmaceuticals International Inc.'s stock took a sharp turn lower in premarket trade Tuesday, after the company said in its business update that disruption in its dermatology business, from the recent controversies surrounding its Philidor specialty pharmacy subsidiary, would be significant in the short term. The stock was down 3% ahead of the open, after trading up as much as 2.4% prior to the start of the business update. Chief Executive J. Michael Pearson said there has also been some pressure on sales of blood pressure treatment Nitropress and heart block treatment Isuprel, according to a transcript of the update provided by FactSet. Pearson said Philidor, which has committed to cease operations by Jan. 30, 2016, represented just $190 million, or 6.8%, of third-quarter revenue. Still, Pearson said what has happened will impact fourth-quarter results, but the company is still working to quantify the impact. He said an update will provided at the company's investors day in December. The stock has tumbled 65% over the past three months through Monday, while the S&P 500 has lost 1.2%.