Dirty Money #3 – Drug Short
If you were running a Pharmaceutical company and wanted to increase revenues, would you..
- Invest in Research & Development to develop new drugs. OR
- Buy up other drug companies and jack up drug prices as much a the market will take.
This documentary is about money, so the answer is obvious. Valeant Pharmaceuticals dropped R&D from and industry standard of around 15-20% to 3%. The CEO regarded R&D and a waste of money. It makes you wonder what he thought his company was for.
The strange thing about this documentary is the amount of time devoted to the short sellers. These are the people that worked out that Valeant was not sustainable and would crash. Eventually stock price gamblers lost billions and CEOs changed.