05/02/2016 01:44 EDT | Updated 05/02/2016 02:07 EDT

Warren Buffett Dissed Valeant, Canada's Biggest Pharma, And Stock Price Tanked

“The business model of Valeant was enormously flawed."

Bloomberg via Getty Images
Warren Buffet, chairman and chief executive officer of Berkshire Hathaway Inc., listens during a Bloomberg Television Interview in New York, U.S., on Wednesday, April 23, 2014. Buffett discussed the possibility of his company eventually becoming more involved in housing finance once lawmakers resolve future of Fannie and Freddie. Photographer: Chris Goodney/Bloomberg via Getty Images

OMAHA, Neb. — Investor Warren Buffett says Valeant Pharmaceuticals' practices were flawed, so he declined to invest Berkshire Hathaway's money in the company.

Buffett appeared on CNBC Monday after meeting with Berkshire Hathaway shareholders over the weekend.

He reiterated comments he made a few days earlier at Berkshire's shareholder meeting, where Buffett said: “The business model of Valeant was enormously flawed. ... I watched the Senate hearings a couple days ago when Senator Collins and Senator McCaskill interrogated three people from Valeant, and it was not a pretty picture.”

Valeant shares fell nearly 11 per cent in early trading Monday, before recovering some of the loss. Shares were trading down about 4 per cent, at $40.12, as of early afternoon.

Buffett says some Valeant shareholders urged him to look at investing in Valeant in recent years, but he decided not to after examining the company.

Valeant is dealing with intense scrutiny of its business practices, a huge drop in stock price and insurers are demanding discounts from its drug prices.

Current and former Valeant officials were grilled by Congress last week over the company's strategy of buying up older medicines with limited competition and then jacking up their prices many times above prior levels.

— With a file from The Huffington Post Canada

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