The senior management at Valeant have shown themselves to be very shortsighted and uninformed. Valeant bought a small privately held pharmaceutical company named Dow Pharmaceutical. This company had a proven track record of growth and innovation. It was a place where one would look forward to going to work everyday. After the takeover the contract business all but disappeared because other large pharmaceutical companies were not comfortable with sharing their projects with a large mercenary competitor. Morale dropped to the point where almost every day someone else was leaving to find another job. Then Valeant merged with BioVale, another large Pharmaceutical company. The result was a massive round of layoffs. One third of the workforce was cut. The original company, Dow, as I had known it was reduced to just a shell and needless to say morale is now at a new low. The value of Valeant shares (vrx) on the open market has been on a steady decline ever since. This is not what I would consider a successful business model.
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