U.S.-listed shares of Valeant Pharmaceuticals International Inc slumped around 13 per cent on Monday, the second consecutive day of steep declines, wiping out a lot more than $6 billion in market price since Thursday’s close.
The embattled company’s shares closed down 9.7 percent on Friday, after Wells Fargo started coverage on the Canadian drugmaker having a “underperform” rating.
“We believe the Valeant board and management make decisions that may have put Valeant at significant business and reputational risk,” Wells Fargo analyst David Maris wrote.
Here’s Valeant’s stock chart in the last 72 hours.
Valeant was pummeled late last year when questions regarding its business and accounting practices spooked investors, using the stock ending 2015 down about 70 per cent from its August high of $263.81. The stock had fallen 16 percent this season to Friday’s close.
Meanwhile, Southern Investigative Reporting Foundation said on Monday that Valeant’s interim CEO Howard Schiller used the company’s jet three times in the past month together with his family and friends to a small regional airport in Montrose, Colorado near his Telluride ski-house.
Valeant’s options were busy on Monday with 39,000 contracts traded by 1:00 PM ET, at nearly twice the standard pace, and trading appeared to be a mixture of bullish and bearish bets, according to options analytics firm Trade Alert.
The stock’s 30-day implied volatility, a gauge from the chance of a large relocate the shares, is incorporated in the 98th percentile of the range of readings over the last 52 weeks.
Valeant hasn’t yet announced to start dating ? to release earnings for that year ended Dec. 31.
The company’s Toronto-listed shares were down 14.4 per cent at $100.08.
? Thomson Reuters 2016