Aliso Viejo-based Valeant Pharmaceuticals International said Tuesday that it’s restated earnings to account for stock options.
The drug maker said it’s restated earnings for 2003, 2004 and 2005, as well as selected data for 2001 and 2002.
Valeant’s restating the results to account for additional stock-based compensation expense, correct certain accounting errors and record related tax effects. It’ll see a pre-tax charge of $31.1 million and an after-tax charge of $23.5 million for the expenses.
The company also released restated its third-quarter earnings. Valeant swung to a profit of $13.7 million from a loss of $2.7 million in 2005’s third quarter. Analysts expected the drug maker to earn $12.1 million in the quarter. Third-quarter revenue was $220 million, slightly higher than the $219.4 million reported in November.
Valeant is among scores of companies caught up in the stock options backdating scandal.
The company started reviewing its stock option practices after the Securities and Exchange Commission asked it for information on how it granted options as part of an informal inquiry.
A special investigative committee of Valeant’s board found that while some errors were as late as January 2006, most errors related to those options granted were prior to a shake-up in Valeant’s board and management in mid-2002, when the company was known as ICN Pharmaceuticals Inc.
