Tuesday, May 17, 2016
The short seller who helped bring down Valeant has now invested in the company
Andrew Left is long on Valeant.
The noted short seller and head of Citron Research told The Street's Real Money blog that he has taken a stake in the troubled pharmaceutical company even though he still has some out-of-the-money puts, a type of short position.
Left, you'll remember, was the author of a damning report in October 2015 that accused Valeant of being a "pharmaceutical Enron"and helped bring up questions regarding the firm's accounting and relationship with specialty pharmacy Philidor.
Now Left says, "I don't think they're going to make any decisions that are going to torpedo their company," according to The Street.
Left previously said that he has closed his short position, calling the stock "uninvestable" in March. It appears that he has since changed his mind.
Valeant was again in the news on Monday with an announcement that it was lowering the price of some of the drugs in its portfolio.
This has been a long year for the Canadian drugmaker.
It has had its practice of buying drugs and raising the prices come under fire by everyone from Hillary Clinton to the US Senate. Additionally, accounting discrepancies highlighted by Left led the company to sever ties with distributor Philidor and completely overhaul its financial statements from the past two years.
Valeant's stock is up 3.5% for the day at $26.79 a share. It had been negative for the day up until roughly 2:50 p.m.