FP says Valeant going to Zero
FP says short seller figures Valeant's heading to zero
2016-07-14 09:28 ET - In the News
The Financial Post reports in its Thursday edition that the short seller who put a critical spotlight on Valeant last year says he is once again taking a short position on the drugmaker after one of the largest shareholders, Sequoia Funds, announced it had sold its shares. The Post's Damon van der Linde writes that Valeant's stock fell more than 5 per cent on Wednesday after Andrew Left of Citron Research said the long-time investor's exit signalled more downside ahead. "I think it's obvious it's a zero now," Mr. Left told The Street. Sequoia was Valeant's second-largest shareholder, owning about 20 per cent of its stock. The drugmaker once accounted for more than 30 per cent of the Sequoia portfolio; however, on Tuesday its managers announced to investors that Valeant was no longer a holding as of mid-June. "Valeant was our largest position to start the year and its 80 per cent decline through June 30 badly penalized our results," said a letter signed by the fund's investment committee. "It's already a sinking ship," Mr. Left said. "With the Titanic going down you can at least get on a lifeboat and get out with what you can." In October, Mr. Left accused Valeant of being a "pharmaceutical Enron."