Bill Ackman Finally Cuts His Losses on Valeant


Bill Ackman Finally Cuts His Losses on Valeant

Valeant's New York-listed stock was down 10.9 per cent as of 9:35 a.m. ET.

At its current value, Pershing stated that its Valeant position represented 1.5 - 3.0% of its funds, but required an inordinate amount of time and resources so it elected to sell and realize the tax loss.

This is not the first time that Acman suffered big losses.

The company sells its skin care brands CeraVe, AcneFree and Ambi to L'Oreal to raise more than $2 billion. It has been accused of price-gouging and accounting fraud, and saw two of its former executives arrested late previous year. It also has other potential upcoming catalysts, including more asset sales, a potential settlement with the SEC, and further debt repayment. The two are accused of conspiring to set up Philidor as a market to distribute Valeant drugs.

Shares fell 12.3% Tuesday, hitting $10.62 apiece and putting even more pressure on the already struggling healthcare company. In New York, the stock lost nearly 22 per cent, closing at $14.98 US.

Regardless of this development, investors continue to be bullish.

Additionally, Valeant Pharmaceuticals has started looking to asset sales as a way to relieve its debt burden, and Valeant Pharmaceuticals had told that the company could sell about $8 billion in non-core assets. Less than two years ago, Valeant appeared to be on top of the world. Kistler Tiffany Companies LLC now owns 5,567 shares of the specialty pharmaceutical company's stock valued at $137,000 after buying an additional 2,719 shares during the last quarter. Buy rating has been given by 5 analysts to the company stock whereas 1 analyst given UNDERPERFORM rating to stock and no analyst given HOLD rating.

"This company played the momentum game incredibly well", said Lyle Stein, senior portfolio at Vestcap Investment Management, in an interview with BNN.

US lawmakers accuse Valeant of gouging patients during a congressional committee. Ackman will remain on the board at Valeant until the company's next board election. He announced his stake in March 2015 and shares surged to $260 a share a few months later.

It hasn't been a good couple of years for billionaire investor Bill Ackman.

The company reported its EPS on 02/28/2017.

Analysts are also projecting an Average Revenue Estimate for Valeant Pharmaceuticals International, $2.17 Billion in the Current Quarter.

Bill Ackman's Valeant chapter is finally coming to a painful close.

Valeant CEO Joe Papa said they accept Ackman's decision.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX) had its price objective cut by Deutsche Bank AG from $20.00 to $19.00 in a research note issued to investors on Tuesday.

Valeant passes RBC to become most valuable company on TSX.

Ackman's Pershing Square Capital Management hedge fund had amassed the massive Valeant stake at an average price of $196 a share, according to the fund's 2016 annual report.



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