John Paulson joins Valeant’s board after his firm took a nearly $2 billion hit on Valeant
Posted by Lauren Thomas on 19th June 2017
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This post was originally published on CNBC NEWS

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John Paulson, one of the widest known names in the hedge fund world, will be joining the board of Valeant Pharmaceuticals, the drug company announced Monday morning.

Paulson became a director of the board on June 14, Valeant said.

“We are pleased to welcome John to Valeant’s board of directors,” Valeant CEO Joseph Papa said in a statement.

“With his significant business and financial expertise, John will be a strong addition to the board. His experience will be especially valuable as we continue to execute on our transformational strategy to turnaround Valeant.”

Ironically enough, Paulson has made a handful of bad bets on drug makers, including one on Valeant. That particular crummy trade resulted in a nearly $2 billion loss for his firm.

Paulson’s firm, Paulson & Company, had recorded nearly double-digit losses in several of its larger funds as of the end of March, The New York Times has reported.

“The strategic plan to transform Valeant smartly focuses on rebuilding the company’s core franchises in ophthalmology, dermatology and gastroenterology while simultaneously using the proceeds from the sale of non-core assets and operating cash flow to de-lever the company,” Paulson said Monday about his new partnership with the drug maker.

“I am fully supportive of the strategy and leadership team at Valeant,” he added.

According to Forbes, Paulson remains one of the hedge fund world’s richest billionaires, but he doesn’t boast as much money as he used to.

Paulson has seen his net worth drop by about $2 billion over the past year, to $7.9 billion, Forbes found, having suffered through several wrong trades, which include bets on a Greek recovery and Puerto Rico.