Faith is fading fast for investors remaining in Valeant Pharmaceuticals Intl Inc (NYSE:VRX) with the pharma stock losing around 10% in Tuesday’s early deals.
It comes after billionaire investor Bill Ackman, via Pershing Square Capital Management, retreated out of the drugmaker – selling his entire stake and in turn leaving the board.
Valeant shares have fallen a long way off their peak, at around US$250 in 2015, and it is reported that Pershing’s share were offered between US$11.10 and US$11.40.
Ackman may have reportedly lost US$2.8bn just on the sale of shares held at the end of 2016, though the total loss on the investment is expected to be higher.
The high profile investor backed Valeant nearly three years ago in attempted takeover action – a hostile move for Allergan – before taking a direct stake in the group, but, the more recently Valeant has been under scrutiny over drug pricing and sales strategies, debt and waning investor confidence.
In New York, Valeant shares were down US$1.23 (10.20%) changing hands at US$10.85 each.
Story by ProactiveInvestors