Valeant has since plunged further, after it surprised investors Sunday night by withdrawing its financial forecast, delaying fourth-quarter results and announcing Pearson’s return from medical leave. The drugmaker also disclosed a new U.S. Securities and Exchange Commission probe on Monday afternoon. The stock is now trading almost 75 percent below its price in August, and closed Tuesday at $65.45.
Some sell-side analysts have started to change their stance. This week, RBC Capital Markets cut its rating on the stock to sector perform, Canaccord Genuity cut its rating to a hold, Jefferies lowered its target price, and Deutsche Bank suspended its rating.
“There was a lot of soul searching,” Khmelnitsky said of the time when he was the only one with a negative rating. “You start questioning yourself. I came to the conclusion that my analysis was right and I stayed with the call.”