Mar 16, 2017 11:35 AM EDT

Here’s How Billionaire Investor Bill Ackman Lost $4 Billion

Billionaire investor William "Bill" Ackman's strong faith in the potential recovery of the ailing drug company, Valeant Pharmaceuticals International Inc. did nothing to prevent the multi-billion dollars' worth of losses that he recently suffered. Ackman held firm on his belief that Valeant Pharmaceuticals will weather through scandals, lawsuits and debts. Unfortunately, the drug company failed to do so.

Ackman losing nearly $4 billion in connection with Valeant Pharmaceuticals International is the biggest news in the drug industry this month. While the loss was certainly shocking, it appears that a number of people had been prepared that the loss was inevitable.

According to a report on Reuters, Ackman offloaded all his stake in Valeant Pharmaceuticals International at a loss of more than $3 billion. The sale signals his failure to rescue the company, but it might be welcome news for investors whose funds are under his care.

Investors in Ackman's Pershing Square Capital Management had been begging Ackman to let go of Valeant Pharmaceuticals International, but he paid them no heed. Ackman had been very vocal in his support of the drug company, hoping that it will eventually stage a turnaround after regulatory investigations and other issues.

Ackman had been hoping that Valeant Pharmaceuticals International's sale of its gastrointestinal division, Salix, to Takeda would help the drug company rise from the ashes. However, the deal failed to materialize, leaving Valeant in a much deeper slump.

Bloomberg News reported that with the sale of the Valeant Pharmaceuticals International stake, Ackman had admitted defeat and had accepted that his company can no longer set aside money and resources to keep holding on to the drug company.

Jobs & Hire reported in 2016 that Valeant Pharmaceuticals International had been offloading assets in order to stay afloat following scandals, lawsuits and debts.

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