Bill Ackman Describes Valeant as Early Stage Berkshire Hathaway

Bill Ackman
Bill Ackman, Founder and Chief Executive Officer of Pershing Square Capital Management LP, speaks during the 20th Annual Sohn Investment Conference in New York, on May 4, 2015. Photographer: Andrew Harrer/Bloomberg

William Ackman, the Pershing Square Capital Management founder who wages campaigns against corporate management and boards, compared Valeant Pharmaceuticals International Inc. to an early-stage Berkshire Hathaway Inc.

Ackman made the comments at the Sohn Investment Conference in New York on Monday. He was the final speaker of the day at the event, which is held annually and raises money for pediatric cancer research and care.

Valeant should be worth more than $330 a share currently, based on assumptions including $10 billion of acquisitions a year, said Ackman, whose investment firm is the second-largest shareholder. The stock closed today at $222.86.

Valeant has “plenty of room” to do more deals, Ackman said of the Bridgewater, New Jersey-based drugmaker.

Ackman generated $4.5 billion for his clients last year, more than any of his rivals, according to a report. He had profited on investments including drugmaker Allergan Inc. and Canadian Pacific Railway Ltd. Ackman is also betting against Herbalife Ltd., after accusing the company of running a pyramid scheme.

Pershing Square has posted a 6.5 percent gain this year through April 28 in its publicly traded fund.

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