Ackman Sells Entire Valeant Stake, Takes Huge Loss

VRX Chart

What are analysts Suggestions on: Valeant Pharmaceuticals International, Inc. (NYSE:VRX)

Here is a timeline of the company's rise and fall.

Hedge fund manager Bill Ackman sold his entire stake in the company for a loss of $3 billion. Since the open, shares have moved 0.09% after recently hitting the $10.71 mark. The drop follows an announcement that William Ackman's Pershing Square Capital Managment has sold its final stake. This means that Valeant delivers plenty of cash flow, despite posting big losses on an income basis.

Ackman's loss is about $2.8 billion in total. He chose to give up on Valeant, a favorite among hedge-fund types before probes into its business practices, accounting and drug pricing caused a collapse in the shares, after a lengthy campaign to turn around the company and salvage his investment.

Former Valeant executive Gary Tanner is arrested and charged with running a fraud-and-kickback scheme.

A number of other brokerages have also commented on VRX. Subsequently, BMO cut VRX's price target to $15 from $19.

That's below Valeant's previous 52-week low of US$11.36 on the New York Stock Exchange. CEO Joseph Papa has pledged to pay down US$5 billion by the middle of 2018 as well.

The news agency Bloomberg reports that US prosecutors are investigating a possible fraud case involving Valeant's former CEO J. Michael Pearson, and Howard Schiller, the ex-chief financial officer. "We appreciate the support and guidance that Bill and Steve provided during a challenging time".

Looking about the past performance history, the company plunged -2.42% in past week and declined -18.83% in one month. Davis Selected Advisers raised its stake in shares of Valeant Pharmaceuticals Intl by 0.9% in the second quarter.

Valeant has been struggling for over a year now. The shares have fallen about 56% during the last six months. This showed the surprise of 4.1% in the last quarter earnings.

Last April, Ackman testified before a Senate committee about Valeant's much-maligned strategy of buying niche drugs and raising their prices by as much as 3,000 per cent.

The technical rating goes from one, the weakest upside technical, to five, the highest upside technical and focuses on the real-time stock price relative to various moving averages as well as moving averages relative to each other. It also suggests the company will have difficulty paying its debt.

This Company belongs to Medical sector.

In Ackman's defence, he did kill the market in 2014; Pershing Square increased 40.4% that year versus a S&P 500 return of 13.7%. Wells Fargo & Co set a $11.00 price objective on shares of Valeant Pharmaceuticals Intl and gave the company a "sell" rating in a research note on Saturday, February 25th.

While a few cynics criticized Valeant's approach to growth acquisition, investors were citing the company as the new model of pharmaceutical companies with the bare-minimum of R&D.

Valeant passes RBC to become most valuable company on TSX.

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