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Ackman: Valeant Doesn't Have To Sell Core Assets

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Ackman: Valeant Doesn't Have To Sell Core Assets

Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) have plunged roughly 90 percent over the past year and the company's mounting debt load is having investors think the company's only path towards long-term survival is selling off core assets.

Billionaire hedge fund manager and Valeant board member Bill Ackman was a guest on CNBC Thursday to discuss various issues, including his outlook on Valeant.

"The underlying franchises here are strong," Ackman said in the interview. "There has clearly been business disruption as a result of recent events, but I think we got a really strong CEO."

Related Link: Valeant Responds To Former CEO's Stock Transactions: Not A Reflection Of Our Ongoing Viability

Ackman added that under the new CEO, Joseph Papa, Valeant is now generating cash "every single day." He added that the cash flow will be allocated towards de-levering the business and there will be no need to sell core assets.

Ackman also stated that investing in Valeant "isn't without risk" but Papa is already "doing a very good job" and will "have a lot more to report" in a few weeks will help make investors "comfortable."

Shares of Valeant were trading higher by more than 4 percent at $22.49 Thursday afternoon.

Posted-In: Bill Ackman Bill Ackman Valeant CNBCNews Health Care Asset Sales Media General Best of Benzinga

 

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