Greenberg: Valeant Reminds Me Of Tyco

Herb Greenberg, a partner at Pacific Square Research, talked about the similarities of Valeant Pharmaceuticals Intl Inc VRX to Tyco back in 2002.

"The big difference between two companies is that Tyco had big entities to sell. This is a bunch of different drugs," Greenberg told CNBC.

Greenberg noted Valeant may succeed in breaking the "buy to raise prices" model. Valeant may also succeed in breaking the model of bull market shrouded accounting shenanigans.

"Now the whole pharmaceutical strategy of buy to hike price of the drug is kind of broken. When somebody buys these drugs, what will happen to the pricing of drugs. A lot will go in to that," he added.

Commenting on the potential break-up of Valeant, Greenberg said "the bigger story is.. in breaking of Valeant, people forget that this is a company that was built on a boom market."

"Everyone was overlooking things. The entire roll of pieces, whether in the drug industry or outside of the drug industry, that is a boom market for phenomenon, now broken market that entire model goes beyond Valeant. I would argue that not what it was," Greenberg concluded.