David Maris, Wells Fargo Securities managing director and equity research analyst, said Valeant's shares carry too much risk to be recommended as an investment.
The stock was down 22 percent on Tuesday. Maris has a "sell" rating on it, but said the company still has some time to sell off some assets and right the ship. Maturities on the company's debt happen in the next two to four years.
With $30 billion in debt, $15 billion in acquisitions and a deteriorating cash positions, Maris said he told Valeant's management they may have to consider restructuring.
The company told CNBC last week it was in talks to sell its Salix business to Takeda Pharmaceuticals, possibly for $10 billion, although Valeant paid $13 billion for it in the past.
"To me, it absolutely has to be written off," Maris said. "It's a complete zero."