As many of you know, the last couple of weeks have gone pretty poorly for Valeant Pharmaceuticals and poorly by extension for Bill Ackman, whose Pershing Square is a major investor in the company. The stock price has fallen off a very high cliff, Pershing lost $1 billion last Tuesday alone, and yesterday, it was announced the company needs a new CEO. Despite all that, the hedge fund manager said it last week and he'll say it again: this is is a crackerjack company that deserves so much more than its current market price. In fact, you can chalk up Valeant's recent woes almost entirely to bad PR. Okay, maybe not one hundred percent of it, but pretty damn close.
Ackman blamed bad public and investor relations for the almost 90 percent decline in the company’s shares since their August peak, and promised to overhaul the company’s communications efforts, said the people. Valeant’s problems -- where a relatively minor accounting issue snowballed into a massive crisis -- was reputational, not operational, and would be repaired, the men told employees. Valeant has a been a brutal investment for Ackman. Pershing Square owns 9 percent of Valeant, including 6.3 percent of the company’s common shares, making it one of the top three holders.
Earlier: Bill Ackman Not Worried About Valeant In The Slightest; It’s Gonna Take A Lot More Than A $1 Billion Loss To Shake Bill Ackman’s Confidence In Valeant; Bill Ackman Insists That His Valeant Habit Is Under Control