(Adds further comments from Ackman)
By Svea Herbst-Bayliss
NEW YORK, March 8 (Reuters) - Billionaire investor Bill
Ackman on Tuesday called embattled drug company Valeant
Pharmaceuticals VRX.TO a "very valuable asset" but forecast
that if the company's situation does not stabilize soon new
management will be brought in or the company will be sold.
"It will be a messy fourth quarter and a messy first quarter
but after that things should stabilize," Ackman, whose Pershing
Square (NYSE:SQ) Capital Management is Valeant's third largest owner said
at the Harbor Investment Conference.
Valeant's share price has tumbled 68 percent since Ackman
first bought the stock a year ago. Recently the company said it
would have to restate earnings, delayed an earnings call and saw
its chief executive return unexpectedly from a long sick leave.
Ackman said that Valeant has a portfolio of valuable
products and cited its Bausch and Lomb unit as one of the
company's jewels.
While trading in the stock has been volatile recently with
investors worried about what may happen next, Ackman said that
he expects more clarity soon.
Also chief executive Michael Pearson (LON:PSON), who helped build the
company, recently came back from an extended sick leave after
battling pneumonia. Ackman has previously said publicly that he
backed Pearson.
"A lot of the uncertainty will lift in the next weeks," he
said referring to the earnings statement that is expected to be
filed next week.
But Ackman conceded that Valeant is "the most contrarian
stock investment you can own right now,"