Pershing Square Exits Valeant Pharmaceuticals ~ market folly

Tuesday, March 14, 2017

Pershing Square Exits Valeant Pharmaceuticals

Bill Ackman's activist firm Pershing Square Capital Management has announced it sold 27 million shares and options in Valeant Pharmaceuticals (VRX). 

Per the release, "We elected to sell our investment and realize a large tax loss which will enable us to dedicate more time to our other portfolio companies and new investment opportunities."

Around the time of sale, Pershing's VRX position size was smaller by their standards, between 1.5% to 3% of their funds.  Like many hedge funds involved, they suffered sharp losses.

With this news, the only other major funds involved with Valeant as of the end of 2016 include ValueAct Capital (who have now roundtripped their investment) and Paulson & Co.

Per Google Finance, Valeant Pharmaceuticals is "a pharmaceutical and medical device company. The Company is engaged in developing and marketing a range of branded, generic and branded generic pharmaceuticals, over-the-counter (OTC) products, and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment, and aesthetics devices). It operates through two segments: Developed markets and Emerging markets. In the Developed Markets segment, it focuses on the areas of dermatology, neurology, gastrointestinal disorders, and eye health therapeutic classes. In the Emerging Markets segment, it focuses on primarily on branded generics, OTC products and medical devices. Its pharmaceutical products include Xifaxan, Solodyn and Glumetza. Its OTC products include PreserVision, Biotrue and Boston. Its other generic products include Latanoprost and Metronidazole. Its ophthalmic surgical products include intraocular lenses, such as Akreos, enVista, Crystalens and Trulign."

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