Neurogram/August 2015: “This brings us to Valeant Pharmaceuticals. We despise Valeant, a company that routinely treats acquired companies like poachers who have machine-gunned an elephant in the veldt, stripping the tusks while leaving the carcass to rot in the tropical heat.”
Neurogram/October 2015: “Valeant’s price-gouging (they say they don’t actually gouge, they raise the price astronomically, and then give discounts….right) left them swimming in the same cesspool as Turing Pharma, and now today, an activist short seller, Citron Research, issued a report that charges Valeant with operating two specialty pharmacies as a way of camouflaging their actual drug-sales activity flow. To which Bill Ackman, head of Pershing Capital, and formerly in league with Valeant in the attempt to bludgeon Allergan into accepting its hostile takeout bid, responded by buying around $200 million more of Valeant’s stock…….To be fair–they’re all vipers. There isn’t a hero to be found in this motley but extremely overpaid crew. We do not know where the truth lies in the relationship between Valeant and its two specialty pharmacy progeny/prey, and we do not particularly care. It all adds up to more collateral damage to the reputation of the pharma industry, which does have its share of vipers, but nothing like this. This is a reality show from Hell: Lock the lot of them in an underground bunker, and let the cameras roll. We will not be watching.”
And now the final episode is at hand for Valeant. The CEO has finally been ousted, and the CFO officially outed as having engaged in “improper conduct.” In other words, the vipers are shoving each other out of the getaway car in the hope that the pursuers will be distracted from the fact that Valeant is a corpse masquerading as a company. However, the CFO refused to resign from the BOD, while William Ackman has joined it. Those BOD meetings could constitute Reality TV at its hyperbolic worst, and we know just the right orange-haired host for it.
One other thought: William Ackman was the co-conspirator who tried to coerce Allergan into accepting Valeant’s buyout bid, Allergan of course finally turning to Pfizer. Allergan shareholders should meditate on that for a moment–Ackman tried to give them Ebola, and they ended up winning Powerball. If that doesn’t spur them into fervent religiosity, nothing ever will. The fact that Ackman is now going to help helm Valeant’s final descent into Hell only confirms the amorality of the cause–and that no White Knight will emerge to somehow pull the company out of this death spiral.