UPDATE 2-Ackman defends Valeant, hints at more changes

(Adds stock price, background)
By Svea Herbst-Bayliss and Caroline Humer
BOSTON/NEW YORK, May 2 (Reuters) - Billionaire investor
William Ackman on Monday mounted a vigorous defense of Valeant
Pharmaceuticals VRX.TO , ruling out any sale of the drug
company's "crown jewel" assets but saying price cuts and even a
new name may be in its future.
Ackman, whose Pershing Square (NYSE:SQ) Capital Management owns 9
percent of Valeant, predicted the company would turn around with
the help of its new chief executive officer and by selling
greater volumes of products instead of just raising the price of
its drugs.
He also took aim at Berkshire Hathaway (NYSE:BRKa) BRKa.N Vice
Chairman Charlie Munger, who criticized Valeant at Berkshire's
annual shareholder meeting over the weekend.
"The company is not a sewer," Ackman said on CNBC
television's "Halftime Report," echoing the words Munger used to
describe Valeant. "It is not fair to indict an entire company
based on the actions of a few," Ackman said.
Valeant has become Ackman's biggest headache in the last
year as the stock price tumbled some 85 percent. One year ago he
touted the Canadian company as one of his best ideas at the Sohn
Investment conference. This year he will not be speaking at the
conference, where he has been a regular for years.
Ackman told CNBC, he is sticking with Valeant because he
feels he can "fix" the company.
"The time to invest is pretty much when everyone thinks this
is a bad idea," Ackman said, calling Valeant "the cheapest large
company I've seen in my career."
In the roughly six weeks that Ackman and his firm's Vice
Chairman Steve Fraidin have been directors on Valeant's board,
the board has hired Joseph Papa to replace Michael Pearson (LON:PSON) as
chief executive and ensured that the company released its long
delayed annual report on Friday.
On Monday, Ackman said that Valeant does not have to sell
any assets to meet obligations and added that it will have a "an
investment grade balance sheet sometime within the next two to
three years without selling one asset."
At some point the Valeant name may be jettisoned, Ackman
said, acknowledging that company employees are now embarrassed
to say they work for the company.
Valeant's aggressive accounting tactics and practice of
pushing up prices on newly acquired drugs has hurt the company,
putting it into the crosshairs of other prominent investors,
including Munger and Buffett at Berkshire, who called Valeant's
business model "enormously flawed."
Munger acknowledged Ackman's investing acumen in an
interview with Fox Business, saying "he's certainly made a
brilliant investment in General Growth Properties GGP.N and
he's totally right about Herbalife (NYSE:HLF) HLF.N " where Ackman has a
$1 billion short position.
Ackman said Valeant's management and the board understand
the anger shown toward the company by lawmakers and investors.
As Ackman spoke, Valeant's stock cut its losses by nearly
half to trade at $32.52 per share.