A U.S. regulatory probe of Valeant Pharmaceuticals, disclosed by the company on Monday, is focused on the drugmaker's relationship with specialty pharmacy Philidor RX Services and was triggered by Valeant's own request that regulators investigate a short seller's allegations, people familiar with the matter said.
The Monday disclosure of the Securities and Exchange Commission investigation put new pressure on Valeant, contributing to a nearly 20 percent drop in its shares. The company on Monday confirmed the probe but did not provide any details on it. Valeant did not immediately respond to a request for comment on Tuesday.
The Wall Street Journal reported that the probe was focused on Valeant's relationship with Philidor.
Some of the people interview by Reuters said that Valeant Chief Executive Michael Pearson described the Philidor link to some brokerage analysts during one-on-one conversations on Monday and Tuesday.