Pershing Square CEO Bill Ackman appeared on CNBC Monday night to restate his confidence in Valeant after shares cratered that day—though it hasn’t frozen the selloff.
“We expect much of the uncertainty will be resolved in the relative short term, hopefully over the next few or so weeks, when we expect the company to issue results, update guidance, and file its 10-K,” Ackman, who holds a 9% stake in Valeant (VRX), told CNBC.
Valeant stock dropped as much as 6% Tuesday, falling to its lowest point in more than three years.
Ackman’s interview comes on the heels of a distressing start to the week for Valeant, with shares sinking 18% Monday after the one-time hedge fund darling disclosed it was under investigation by the Securities and Exchange Commission. Over the weekend, the Canadian company also revealed it would delay its quarterly filing, recall 2016 financial guidance, and that CEO Michael Pearson was returning from medical leave immediately.
Ackman added that the Valeant’s “core” still looked strong, though the company’s investor and public relations department could use work, reiterating his long-held—but heavily questioned—view that Valeant’s biggest problem is its public image.
Ackman, who has been one of the most vocal supporters of the stock, has stuck with the pharmaceutical company through the thick of its price gouging and accounting fraud allegations last year—which accounts for part of Pershing Square’s poor returns. The hedge fund most recently reported a loss of 17.3% for 2016, erasing its gains from 2014.
Valeant’s stock has lost more than 76% of its value since its all-time high of $263.81 on Aug. 6, 2015.