UPDATE 1-Ackman says Valeant may find new CEO in weeks, not months

(Adds details from call, stock price)
By Svea Herbst-Bayliss
BOSTON, April 6 (Reuters) - Billionaire activist investor
William Ackman on Wednesday offered a more optimistic outlook
for Valeant Pharmaceuticals (NYSE:VRX) Inc. VRX.TO , saying the embattled
drug maker's annual report will be filed soon and that its
search for a new CEO is moving forward.
Valeant shares surged some 20 percent after Ackman's
remarks, adding to a roughly 10 percent gain on Tuesday after an
internal committee did not find additional problems requiring
restatements of the Canadian company's financial results.
In a conference call with investors of his firm's Pershing
Square (NYSE:SQ) Holdings fund, Ackman said Valeant is on track to deliver
its delayed 10-K annual report by the end of April.
He said that financial filing would eliminate fears the
company might default on its debt, possibly rekindling interest
among investors. "This will be a significant milestone and make
the stock investable again," he said.
Ackman also said progress is being made in the search to
replace Valeant Chief Executive Officer Michael Pearson (LON:PSON), who was
forced to step down after the stock fell about 50 percent on
March 15 in the wake of disappointing fourth-quarter results and
guidance as well as mistakes in presenting the numbers.
"We are cautiously optimistic that it is a matter of weeks
not months to identify a new CEO," said Ackman, who joined
Valeant's board last month.
The call on Wednesday was the first time Ackman and his team
had walked investors through the portfolio since reporting that
the Pershing Square Holdings fund dropped 25 percent in the
first three months of the year, its worst-ever result.
While Ackman discussed other losing bets including Platform
Specialty Products PAH.N and Herbalife (NYSE:HLF) HLF.N , he spent the
bulk of the call answering questions about Valeant.
While acknowledging mistakes, Ackman said he still liked
Valeant's stock and told investors he can make back the bulk of
the money that had been lost. "There is more upside for us in
Valeant in the short term than in any other company in the
portfolio," he said.