+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Here's Bill Ackman's full presentation defending his big Valeant bet

Oct 31, 2015, 00:17 IST

Pershing Square

Bill Ackman, the billionaire founder of Pershing Square Capital, spent nearly four hours hosting a call defending his massive investment in Valeant Pharmaceuticals.

Advertisement

Ackman has lost more than $1 billion on paper after Citron Research, a short-selling firm led by Andrew Left, issued a report asking if the company was running an Enron-like fraud.

The Citron report focused on Valeant's relationship with Philidor, a specialty pharmacy. Citron has accused Valeant of using Philidor to book "phantom sales."

Valeant has denied those allegations and said it would sever all ties with Philidor.

On the call, Ackman said that he expects negative press reports and scrutiny from regulators and politicians in the next several months. He also expects that investigations will conclude in four years.

Advertisement

"Life will go on for Valeant. While this has been a very damaging moment for the company ... we think the Valeant business is quite robust." he said.

Ackman thinks the stock is "tremendously undervalued" and that it has an "89% upside." He added that investors are forgetting the "rest of Valeant's business."

He expects Valeant's share price to be worth $448 in three years. The stock price is currently down about 13% at $96.75, its lowest in more than two years.

We've included the slides below:

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article