UPDATE 1-Ackman boosts stake in drugmaker Valeant

(Adds details on disclosure)
Nov 23 (Reuters) - Activist investor Bill Ackman's hedge
fund has significantly increased its investment in Valeant
Pharmaceuticals International VRX.N , and signaled it may play
a greater role in the beleaguered drugmaker's strategy,
according to a regulatory filing.
Ackman's Pershing Square (N:SQ) Capital Management raised its stake
in Valeant to 9.9 percent from 5.7 percent reported in March,
according to a filing on Monday with the U.S. Securities and
Exchange Commission. (http://1.usa.gov/1LwwmGG) Shares in the
company rose 3.1 percent in after-hours trading.
Pershing noted in its filing that it may conduct discussions
with Valeant management, other shareholders and relevant parties
"including other companies in (Valeant's) industry" about the
drugmaker's strategic plans and other matters. The language
about contacting other drugmakers did not appear in its first
ownership filing in March.
The disclosure comes at a time of heightened speculation
about the future of Valeant, which is under scrutiny for steep
price hikes on its drugs to boost profits and for its close ties
to a specialty pharmacy that used aggressive tactics to get
insurers to reimburse the cost of its medicines.
Some key Valeant investors have questioned whether Chief
Executive Michael Pearson (L:PSON) should step down. Ackman earlier this
month expressed confidence in Pearson's leadership. People
familiar with Ackman's thinking have said the billionaire is
open to considering alternatives for Valeant's future, including
a sale.
"You are one of the most shareholder-oriented CEOs I know,"
Ackman wrote to Pearson in an email seen by Reuters. "You have
assured me that you and the rest of the board are considering
any and all alternatives that would benefit shareholders and
other stakeholders."
For the past few months, Valeant shares have seen steep
losses, declining in value from more than $260 per share in
August to a low of $69.34 last week.
The losses were initially triggered by a critique of rising
drug prices from presidential candidate Hillary Clinton in late
September, and then accelerated when short sellers raised
questions about Valeant's relationship with specialty pharmacy
Philidor Rx Services last month.
Ackman last year teamed up with Valeant in a failed attempt
to acquire rival drugmaker Allergan (N:AGN_pa).