How Bill Ackman Is Defending Valeant

Valeant Pharmaceuticals Intl Inc (NYSE: VRX) stock is down more than 45 percent on the day and more than 80 percent over the past year.

From political attacks raged against the company spearheaded by presidential hopeful Hillary Clinton to further allegations of "price gouging," improper practices by management, "unusual" accounting and most recently a guidance correction hours after its earnings release, Valeant has definitely not had an easy time of it.

However, one defendant remains. Bill Ackman, renowned Pershing Square investor has come to the defense of Valeant in a Tuesday press release.

Ackman Reassures Investors

In the publicly-made note to investors, Ackman reaffirms his stance that the stock has a plethora of potential ahead, despite the recent negativity.

Citing the company's unaudited Q4 earnings, updated Q1, 2016 full-year and upcoming 12-month guidance, and the delayed 10-K filings, Ackman noted, "The above factors have caused investors to lose total confidence in the company as reflected by the current 44 percent decline in Valeant's stock price."

Related Link: Valeant Corrects Guidance Error Hours After Earnings Release: What Happened?

Against that backdrop, Ackman shared that Pershing's Vice Chairman Steve Fraidin joined Valeant's board. "We are going to take a much more proactive role at the company to protect and maximize the value of our investment," Ackman said.

"We continue to believe that the value of the underlying business franchises that compromise Valeant are worth multiples of the current market price."

The activist then brought attention to the difficult process ahead of recognizing those multiples and concluded on a hopeful note, "Getting to those values, however, will require restoration of shareholder confidence in the management and governance of the company. We will do our best to keep you promptly informed subject to any limitations that we have now that we have recently become insiders at the company."

At time of writing, Valeant was down 45.48 percent at $37.64.