Ackman Sprout Valeant investment
Costs Ackman attends the Hamptons International Movie Festival SummerDocs Series screening of’Betting On Absolutely no’at Guild Hall on August 6, 2016 in East Hampton,
New York.Matthew Eisman/Getty Images There’s a great piece in the Bill Ackman’s example, however, really stands apart. That’s in part since it’s connected to one of the greatest company scandals in current years– the fall of Valeant Pharmaceuticals. Ackman has a when he lastly surrendered.
During that time, the WSJ notes, Ackman made an individual financial investment ($7 million for a 1.5% stake) into Sprout, the maker of a libido pill for women called Addyi in 2015. Valeant eventually purchased Sprout, and obviously Grow looked for Ackman’s guidance on the matter, inning accordance with the WSJ.
He guaranteed the company that Valeant’s management was top notch (of course, the majority of them have actually since been fired, including the CEO), and Valeant chose up Sprout for $1 billion since of Addyi. Not a bad payday for Ackman.
The problem is, Addyi has actually been a huge failure for Valeant. Inning accordance with professionals, it simply doesn’t work. While this was an excellent deal for Ackman, it was a raw deal for Valeant and its shareholders (including Ackman’s Pershing Square and its customers.)
“Mr. Ackman told Pershing Square investors he had played no role in Valeant’s decision to acquire Sprout. His economic interest in Pershing Square was bigger than his interest in Sprout, said an individual familiar with his holdings. Valeant spokeswoman Lainie Keller said Addyi is FDA-approved ‘with a well-documented security and effectiveness profile.'”
So, according to the Journal, Ackman’s individual financial investment settled well, while the shareholders of his fund wound up getting burned.But you understand
, these things get untidy.