Citron Research's Andrew Left has "significantly" reduced his short position in Valeant Pharmaceuticals.
"Think about risk reward here," Left said in an interview with CNBC's Scott Wapner on Tuesday.
It was Citron's report comparing Valeant to infamous accounting fraud Enron that started the company's precipitous stock slide last month.
In the report, Citron alleged that Valeant had been using its relationship with Philidor — a specialty pharmacy that used to distribute Valeant products almost exclusively — to file fake invoices and make its revenue appear greater than it is.
Valeant also purchased the option to buy Philidor for $100 million last December.
When Left's report went live Valeant's share price was at $142. On Tuesday it was at $85 — a 43% drop.
Also since then, Valeant has severed ties with Philidor and announced that the pharmacy will be closed by the end of January 2016.
So Left has to feel like a lot of his work is done.
