Valeant Pharma is halted for the 4th time today, this time for news pending, as the stock has lost 40% of its value since the open. The recent bounce, on what David Faber said may be the company buying back stock, just fizzed: VRX Headlines: VALEANT: ALL PHILIDOR SHIPMENTS NOT RECORDED IN TOTAL NET REV VALEANT:NO SALES BENEFIT FROM ANY INVENTORY HELD AT SPECIALTIES VRX: INVENTORY AT PHILIDOR INCLUDED IN INVENTORY BALANCES VALEANT: TIMING OF REV RECOGNITION VIA PHILIDOR IS 'DELAYED' VALEANT SAYS $69M SHIPPED BY VALEANT TO R&O NOT RECORDED REV. Nomura says - do not worry... VALEANT PHILIDOR CONCERN LIKELY MISINFORMATION, NOMURA SAYS But the rest of the Biotech world is in full panic denial mode... HORIZON PHARMA DOESN'T OWN/HOLD STAKE IN SPECIALTY PHARMACIES ALLERGAN: NO OWNERSHIP OR AFFILIATION W/ ANY SPECIALTY PHARMACY ENDO’S USE OF SPECIALTY PHARMACY IS ‘LIMITED,’ RBC SAYS Who can blame them. And here, finally, is the long overdue Valeant Statement, in which the company says the Citron report is "erroneous": Valeant Pharmaceuticals Responds To Erroneous Report Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today responded to recent accusations made regarding its financial reporting and operations. Philidor Rx Services is a pharmacy licensed in Pennsylvania and also provides back-end services, including call center, claims adjudication, IT and logistics support, as well as compliance/HIPPA regulation guidance, to other pharmacies, including R&O Pharmacy. This includes a common call center phone number serviced by Philidor for the Philidor network pharmacies. All shipments to Philidor and other pharmacies in the Philidor pharmacy network, including R&O, are not recorded in Valeant's consolidated net revenue. Sales are recorded only when the product is dispensed to the patient. All sales to Philidor and Philidor network pharmacies are accounted for as intercompany sales and are eliminated in consolidation. They are not included in the consolidated financial results that Valeant reports externally. Any inventory at pharmacies in the Philidor pharmacy network are included in Valeant's consolidated inventory balances – there is no sales benefit from any inventory held at these specialty pharmacies and inventory held at the Philidor network pharmacies is reflected in Valeant's reported inventory levels. The $69 million at wholesaler acquisition cost of products shipped by Valeant to R&O were not recorded as revenue to Valeant when shipped to R&O. When R&O dispensed those products Valeant recognized the net realized amount due from patients and payors (approximately $25 million) and reduced the associated inventory from Valeant's balance sheet. In this case, we estimate the net amount of revenue for the $69 million at WAC would be approximately $25 million. The timing of our revenue recognition by selling through the Philidor pharmacy network is actually delayed when compared to selling through the traditional wholesaler channel. Will this be enough to stop the bleeding, both in the Valeant market cap and Bill Ackman's AUM? Find out in moments when the company is unhalted. For now, with VRX still halted, traders are bidding IBB higher on hope this "denial" stems the carnage...