NEW YORK, March 8 (Reuters) - Billionaire investor Bill Ackman on Tuesday called embattled drug company Valeant a “very valuable asset” but forecast that if the company’s situation does not stabilize soon new management will be brought in or the company will be sold.
“It will be a messy fourth quarter and a messy first quarter but after that things should stabilize,” Ackman, whose Pershing Square Capital Management is Valeant’s third largest owner said at the Harbor Investment Conference. If things continue to be volatile, he predicted that current management would be replaced or the company would be sold.
Valeant’s share price has tumbled 68 percent since Ackman first bought the stock a year ago. Recently the company said it would have to restate earnings, delayed an earnings call and saw its chief executive return unexpectedly from a long sick leave. (Reporting by Svea Herbst-Bayliss; Editing by Chris Reese)