​Valeant may restate earnings after second look at Philidor

Valeant Pharmaceuticals (VRX) shares are up sharply after the beleaguered drug company said it will delay the filing of its annual report with regulators while it sorts out its former relationship with the drug distributor Philidor.

Valeant said it expects to lower its reported 2014 earnings by about 10 cents per share and raise its 2015 earnings by about 9 cents because about $58 million in sales to Philidor were improperly recognized.

Valeant cut ties with Philidor last fall amid allegations that Philidor created a network of "phantom pharmacies" to steer pharmacy benefit managers toward Valeant's more-expensive drugs over cheaper alternatives.

Valeant also has taken heat for price hikes it imposes on drugs it acquires. Interim CEO Howard Schiller testified before Congress recently about the company's business practices.