Pershing Square Activist Presentation Deck
Valeant: Recent Events (cont'd)
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Valeant Share Price - 9/1/15 to 10/29/15
C
Sep 1 Sep 8
10/21/15: Citron releases report claiming
VRX is "next Enron" using specialty
pharmacies to "stuff the channel"
10/21/15: Pershing Square purchases
2mm additional shares at ~$108
10/26/15: Valeant hosts call, discloses details,
D confirms appropriateness of accounting, appoints ad
hoc committee of Board to review Philidor
Sep 15 Sep 22 Sep 29 Oct 6
Oct 13 Oct 20
Pershing Square's Perspectives on Key Topics
C Citron Report
Oct 27
Claim that VRX "stuffed the channel" and
falsely recognized revenue is verifiably false
- Accounting for sales to Philidor is more
conservative than accounting rules applied for
sales made to "traditional" distributors
D Specialty Pharmacies / Philidor
- Increasingly important distribution channel for
the industry
Lack of early disclosure and details regarding
VRX's relationship with Philidor created
uncertainty
10/29/15: Three large PBMs
announce termination of
relationship with Philidor
- Facts continue to evolve
Note: The performance of Valeant's share price is provided for illustrative purposes only and is not an indication of future returns of the Pershing Square funds.
Source: Bloomberg.
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