by Greg Guenthner
Daily Reckoning
Not 24 hours after the marijuana miracle hinted it was safe to trade the bottoming biotechs, the biggest train wreck in the sector flew off the rails. Again.
“Shares of Valeant Pharmaceuticals (NASDAQ:VRX) tumbled nearly by half on Tuesday after the company cut its 2016 revenue forecast by about 12 percent and said a delay in filing its annual report could pose a debt default risk,” Reuters reports.
By mid-afternoon the hedge fund darling was down more than 45%. Yesterday’s gut punch was just the latest in a series of embarrassments for Valeant that have decimated the stock over the past eight months. All told, Valeant shares are down more than 85% from all-time highs posted in July 2015.