When writing a pros/cons article on Valeant Pharmaceuticals Intl Inc (NYSE:VRX), I admittedly did not have much trouble coming up with the cons. Let’s face it, the company has been an absolute disaster for investors: During the past year, VRX stock is off a grueling 85%.

This is a cautionary case of how even some of the world’s best investors can get ensnared in a horrendous trade. Just some of the losers include ValueAct, T. Rowe Price, Ruane Cunniff & Goldfarb and of course, Pershing Square Capital Management’s Bill Ackman.

According to a CNBC interview, Ackman noted, “We went off the reservation. We made one very big mistake taking a passive position in Valeant.”

Grim, right? Definitely. But this does not necessarily mean VRX stock is a lost cause. Hey, when it comes to investing, some of the best opportunities are deep value plays.

So what are some things to consider with Valeant stock? Well, let’s take a look:

VRX Stock: Three Pros

Restructuring: Joseph Papa came on board as CEO back in May and has wasted little time in making important changes. Then again, he has had a standout career in the pharmaceutical industry. Before joining Valeant Pharmaceuticals, he was the CEO of Perrigo Company plc Ordinary Shares (NYSE:PRGO).

As for Papa’s turnaround plan, the key focus has been on stabilizing the operations. No doubt, this has meant heavy cost cutting. Although, perhaps the most important part of the strategy has been the sell-off of assets. Some of the recent transactions have netted a hefty $2.1 billion, such as with the unloading of segments like Dendreon and CeraVe.

But going forward, there will likely be other important deals. Some of the likely candidates include Salix Pharmaceuticals and the surgical equipment unit of Bausch & Lomb.

Innovation: Papa appears to be serious about ramping up efforts for much better drug development. For example, VRX has 43 research and development facilities, which have over 1,000 employees. Papa has also ramped up R&D expenditures 38% on a year-over-year basis.

For this year, VRX actually has over 50 product launches expected. For instance, one promising treatment is Brodalumab, which is focused on severe psoriasis. The total market opportunity is $10 billion.

Then there is Latanoprostene Bunod. It is a treatment for glaucoma — and the market size is about $1.6 billion.

Valuation: VRX stock is really cheap. Consider that the price-to-sales ratio is a mere 0.49. For the most part, a more typical multiple would be 3X or more, as with companies like Merck & Co., Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE) or Eli Lilly and Co (NYSE:LLY).

Of course, the low valuation of VRX is not without reason! But then again, the market cap is at a level — at about $4.6 billion — that can be easily moved. In other words, an unexpected windfall from an asset sale could have a big effect on the stock price.

VRX Stock: Three Cons

Brand and Confidence: Valeant Pharmaceuticals is a classic case of a company that focused too much on growth. The result was an overly aggressively program that led to bad M&A transactions and complexity. But there were also major issues with governance, as seen with the scandal at Philidor that artificially pumped up revenues. Furthermore, VRX often was too greedy with its pricing on its drugs.

The result is that Valeant Pharmaceuticals has become a poster child for the problems with the healthcare industry. As a result, it will take quite a bit of time for VRX to regain its credibility, such as with customers, Wall Street and the government.

Burdensome Debt Load: It’s at a massive $30.4 billion and a large amount will come due within 2018. Therefore, VRX is under tremendous pressure to unload assets and improve its drug pipeline.

Now Papa wants to reduce the debt load by $5 billion within the next year and a half. And while this will be a big help, it still may not be enough.

According to InvestorPlace feature writer James Brumley: “Culling the $30.4 billion burden is a huge step in the right direction, but that would still leave Valeant saddled with a quarterly interest expense of roughly $393 million. For perspective, last quarter’s gross profits were only $1.82 billion, and recurring operating expenses rolled in at $1.57 billion. All the debt would have to go away to make a meaningful dent, and that’s just not in the cards.”

Industry Fundamentals: Donald Trump has noted that healthcare costs are out-of-control and that there should be more rational pricing for pharmaceutical drugs, such as by allowing more competition (one of his more colorful comments noted that companies were “getting away with murder”). This is something that has depressed valuations across the industry, especially with biotech operators.

The problem for VRX is that its business model has been premised on continuing to increase pricing. What’s more, there was not much focus on R&D for new drug development.

All this has put Valeant Pharmaceuticals in a tough spot. In fact, rivals definitely understand this and they are going against the company with more discounts and promotions, as seen with various generic drug firms. Already there has been weakness in VRX products like Ofloxacin Otic, Ziana and Zegerid.

Bottom Line on Valeant Pharmaceuticals

If Papa can pull off a turnaround of VRX, it would definitely be a huge achievement. But it will likely take a few years — at least. There are just too many issues.

Yet in the meantime, there will probably be lots of volatility, which traders can feast on. Again, the divestitures should provide some catalysts.

Given all this, should long-term investors play Valeant Pharmaceuticals stock? It’s probably not a good idea. For the most part, VRX stock is just too speculative right now.

Tom Taulli runs the InvestorPlace blog IPO Playbook and is a registered investment adviser representative (you can visit his site to learn more about his financial planning services). He is also the author of various books on investing like All About Commodities, All About Short Selling and High-Profit IPO Strategies. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.