Saturday, March 5, 2016

a neutron bomb in pharmaceutical industry

Any silver bullet to boost stock price from $13 to $263 in seven years?   The recipe to create this flashy record for Valeant Pharmaceuticals is savage, i.e., hostile takeover of the other companies followed by dismissing majority of the employees, slashing R&D funding down to almost zero and raising the drug price of the acquired company substantially.   Valeant, now under investigation by SEC due to its alleged accounting fraud, has a blatant hostile acquisition record:  acquired Medicis Pharmaceuticals and dismissed 95% of Medicis’s 790 full-time employees;  acquired Bausch & Lomb and slashed 27% of its 4,100 employees;  acquired Salix and 43% of Salix’s  977 full-time employees were let go.   http://www.bloomberg.com/news/articles/2016-03-03/valeant-s-boss-is-back-can-the-ceo-save-the-day-again

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