The famous short seller calls the beleaguered company, The Walking Dead, in an interview with Real Money
Once-a-giant, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is seeking to reimburse the damages that the company has suffered over the past one year. The beleaguered company is now being forced by the investors to revamp its previous strategy of acquiring other companies and hiking prices of acquired drugs subsequently. However, the company will have to unwind few of its businesses which would help it to shore up capital. In a recent interview with Real Money, Andrew Left of Citron Research expressed concern regarding the troubled company, whose shareholders might suffer if the assets are sold at steep discount.
Valeant shares have plummeted over 90% in the recent 12 months and are continuously touching new lows. The drug maker has been subjected to critical investigations regarding its business practices. The company has also been caught in drug price hike controversy. Citron Research was the first one to highlight the improper business accounting practices of the Canadian Pharmaceutical company. Given the recent fall of the company, Citron’s owner Andrew Left recently shared his views regarding Valeant’s performance. He said: “If they sell a business for significantly less than what they purchased, the company could completely implode.”
The famous short seller commented on the struggling company that it can be easily discerned from the stock price that people have lost their confidence on Valeant Pharmaceutical’s business model. He further said: “This thing looks like The Walking Dead,” as he referred to a famous AMC series. Mr. Left expects more companies to make offer on the troubled pharmaceutical company this summer as the recent tamp down in rates by the Federal Reserve has led to discounted availability of credit. He said, “The Fed is pushing Wall Street. It’s cheap money. You’re kind of being forced to do deals.”
While it remains vague whether Valeant will sell off its assets, but the newly appointed management signifies that assets sell off would be the prime focus of Valeant going forward. Valeant has recently inducted Joseph Papa as the CEO of the company and Bill Ackman from Pershing Square as the board member of company. Both of them are expected to reinforce company’s aim to rebuild the business position back to what it used to be once.