Sign up USA
Proactive Investors - Run By Investors For Investors

Valeant Pharma nudges higher as billionaire investor John Paulson joins board

John Paulson heads up New York-based investment firm Paulson & Co which owns a 5.7% stake in Valeant
john paulson and donald trump
Paulson, seen here with Donald Trump, made his billions betting on the housing market crash in 2007

Shares in Valeant Pharmaceuticals International Inc (NYSE:VRX) edged higher on Monday after the troubled drug maker added hedge fund billionaire John Paulson to its board.

Valeant said Paulson – whose New York-based investment firm Paulson & Co is the firm’s largest shareholder – became a director of the board last Wednesday.

The prominent investor, made famous by his US$4bn bet on the collapse of the US housing market in 2007, has been invested in Valeant for a little while but has so far booked a US$2bn loss on the trade.

With Paulson now taking a seat at the table, it could act as a comfort for investors who saw long time backer Bill Ackman bail out in March.

“With his significant business and financial expertise, John will be a strong addition to the board,” said Valeant chief executive Joseph Papa.

“His experience will be especially valuable as we continue to execute on our transformational strategy to turn around Valeant.”

Strategy of sales

The strategy Papa refers to is offloading non-core assets to try and drum up some cash which Valeant needs to do in order to pay off its crippling debts.

The firm recently sold off its iNova business for US$930mln in order to pay down some of that debt, which is estimated to stand at US$28.5bn.

The share price, which is down more than 80% since it 2015 peaks, hasn’t been helped by various accounting and drug pricing scandals.

Shares edged almost 5% higher this morning though to US$13.30.



Register here to be notified of future VRX Company articles
View full VRX profile View Profile

Valeant Pharmaceuticals Timeline

Article
February 28 2017

Related Articles

1-Operation.jpg
January 18 2017
Deltex’s overseas sales are booming but its previously dominant NHS revenues are dropping off
Cells
May 17 2017
Revenues are on the rise and the group’s efforts to bring in new business is delivering.
stem cell
June 12 2017
"With multiple value upside triggers ahead, including imminent maiden revenues from CellPlan, I very much look forward to the opportunities ahead" - CEO João Andrade
Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use