Valeant Just Showed Why Its Share Price Has Deservedly Fallen by 93% Since August 2015

Most drug companies have been relatively unstoppable over the past couple of years, partly because of the optimism surrounding a stock market that keeps hitting new all-time highs, and partly due to the incredible pricing power most drugmakers possess.

However, Valeant Pharmaceuticals (NYSE: VRX) is not like most drug companies. Since its share price peaked at $264 in Aug. 2015, Valeant has lost 93% of its market value, or well over $80 billion if we're talking about market cap.

The embattled drugmaker has been hammered from a number of fronts. For instance, the company was heavily scrutinized over its practice of hiking prices on mature therapies that were acquired. This led to an admission of a "mistake" in the company's pricing practices from its now-former CEO, J. Michael Pearson. In recent quarters, drug pricing has been more of an impediment than a help, with regulators keeping a watchful eye on Valeant's list prices.

Source: Fool.com