Embattled Canadian drug company Valeant Pharmaceuticals is getting hammered again.
Valeant’s stock fell below $30, hitting a 52-week low of $29.88, on Thursday. Valeant’s share price was last trading down $3.15, or down 9.39%, at $30.39 per share.
It’s been a horrible week for the company.
Valeant tanked more than 51% on Tuesday after the company reported fourth-quarter earnings results that fell below analysts expectations and cut its revenue forecast for the year by about $1.5 billion, or 12%. The company has also delayed filing its 10-K.
The lowered guidance adds to a tough run for Valeant, which has been sliding since late 2015 because of scrutiny in Washington, D.C., over drug-price increases and accusations from a short seller. Just last month, the company confirmed that it was part of several ongoing investigations.
A number of hedge funds are large sharholders of the stock. They have suffered massive losses, at least on paper, on their positions.
Activist investor Bill Ackman, the founder of $12 billion Pershing Square Capital, is the largest hedge fund shareholder of Valeant. He’s lost (on paper) more than $1 billion on his position this week alone. He’s lost an estimated more than $2.5 billion since buying the stock in the first quarter of 2015. He’s also having the worst year in his fund’s history.
Last week, Pershing Square added its vice chairman, former M&A attorney Steve Fraidin, to Valeant’s board. In an email to investors, Ackman pledged to take a “more proactive role at the company to protect and maximise the value of our investment.”
So far this year, Valeant’s shares have tumbled more than 70%.
Here’s this week’s chart: