June 26, 2017 / 8:54 PM / 2 years ago

Hedge fund Paulson & Co discloses 6.3 percent stake in Valeant

A sign for the headquarters of Valeant Pharmaceuticals International Inc is seen in Laval, Quebec June 14, 2016. REUTERS/Christinne Muschi/File Photo

(Reuters) - New York-based hedge fund Paulson & Co on Monday reported a 6.3 percent stake in embattled Canadian drugmaker Valeant Pharmaceuticals International Inc VRX.TO VRX.N.

The disclosure comes a week after billionaire investor John Paulson, whose hedge fund firm is the biggest owner of Valeant, joined the company’s board as it restructures to repay debt.

The hedge fund had a 5.7 percent stake in Valeant as of March 31. (bit.ly/2rUDJGQ)

Paulson & Co has suffered heavy losses as Valeant’s stock price plummeted some 96 percent since mid-2015 after the drugmaker became embroiled in an accounting scandal and was investigated for hefty price hikes.

In March, ValueAct Capital also raised its stake in Valeant, making it the second-biggest stakeholder in the company, days after Valeant’s largest shareholder Pershing Square Capital Management sold out of the stock.

Reporting by Divya Grover in Bengaluru; Edited by Martina D'Couto

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