Jim Chanos doesn't think much of Valeant.
Jim Chanos, a well-known short-seller and market bear on companies like Tesla tsla and Alibaba baba , is piling on to Valeant Pharmaceuticals’ vrx misfortunes. Chanos says that investments into the embattled drug maker are comparable to those for infamous firms like Enron and based on a “big lie”—and that hedge funds’ bets on the company represent a huge mistake that cost them billions of dollars.
“Valeant epitomizes everything that went wrong with the marketplace,” Chanos said at the Evidence-Based Investing conference in New York on Tuesday, according to CNBC, adding that it was “the largest single security loss hedge funds have incurred, greater than Lehman, Enron, AIG.”
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Chanos’ position doesn’t exactly come as a surprise. The outspoken founder of Kynikos Associates has heavily criticized Valeant for its general approach to business as a drug maker—including his assertion that the company has relied on acquisitions rather than R&D in order to grow its pipeline.
Chanos believes that hedge funds have lost $40 billion through long bets on Valeant. The drug maker, which is facing a number of legal and regulatory hurdles, recently announced that it was selling off a major gut drug unit to raise cash; its stock is down more than 82% year-to-date.