Short seller Citron Research said Monday it’s not dialing back its warning on Valeant Pharmaceuticals International Inc. as reported over the weekend, but rather dialing back the focus on itself, and its ability to probe and report the “vast spectrum of claims now piling up” against the drug company. “While Citron has been at the nexus of information on this story, we will not be releasing new allegations against Valeant in this piece, as we believe that it is not our responsibility to be the judge, jury, and executioner of the company’s deeds,” Citron said in its latest report on Valeant. A report Citron published in October alleging accounting improprieties at Valeant involving a network of specialty pharmacies that the company had never disclosed to investors sent the stock down as much as 40% in one session. The company has held an investor meeting to defend itself against the charges, and was also defended by hedge fund manager Bill Ackman in a more than three-hour presentation on Friday. Citron said Monday it believes that Valeant will trade at much lower levels and the stock is “toxic” until the issues are cleared up. Goldman Sachs earlier downgraded the stock. Valeant shares rose 5.6% in early trade, but are down 46% in the past month, while the S&P 500 has gained 7%.
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