Legendary short-seller Jim Chanos is not convinced that Valeant is going to turnaround.
“I’m still short Valeant,” Chanos said in an interview with CNBC at the Sohn Conference on Friday.
The pharmaceutical company is a former stock market darling that’s been hit with SEC investigations, Senate investigations, and a precipitous decline in its stock price.
Chanos said that everybody is using metrics that are “just as bad as Valeant’s accounting.”
Valeant has been accused of price gouging, among other things — that is, buying drug companies and raising the prices on their products.
Hedge fund manager Bill Ackman, who is long Valeant, former CEO Mike Pearson, and Valeant’s former CFO and interim CEO, Howard Schiller, last week testified before the US Senate about those accusations.
Ackman on Monday told CNBC he hopes to turn the company around.
Ackman joined Valeant’s board in March as the company’s CEO, Mike Pearson, announced his departure from the firm.
Valeant released its 10-K report last week after multiple delays. It revealed that Valeant misstated financials in the first quarter of 2015, which reduces revenue by $21 million but increases profits by $24 million.
It also disclosed the company was undergoing investigations in North Carolina, New Jersey, Massachusetts, and New York.
Valeant’s stock has plunged about 86% in the past year and almost 70% since October.
More to come…