Long-Term Returns of Bill Ackman’s 5 Activist Targets

In this article, we discuss the long-term returns of Bill Ackman’s 5 activist targets. You can read our detailed analysis of Ackman’s activist targets and their historical performance and go directly to read Long-Term Returns of Bill Ackman’s Activist Targets. 

5. Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

Activist Investment: 2015
Long-Term Returns Since Ackman’s Investment: -84.59%
S&P 500 Gain Since Ackman’s Investment: 14.77%

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) was a small drug maker that invested heavily in research and development for the development of new drugs. Between 2008 and 2015, it changed its focus on R&D and resorted to acquiring companies that already had drugs in the market. It invested almost nothing in its core business, acquiring more than 100 companies.

In 2015, Ackman boosted his stake in Valeant Pharmaceuticals Intl Inc (NYSE:VRX) from a 5% stake to a 9.9% one after the stock had tumbled significantly. The investment came when the company was under immense regulatory scrutiny over its pricing and operating practices.

Initially, Ackman pursued a passive approach, opting not to pressure Valeant Pharmaceuticals Intl Inc (NYSE:VRX) or push for management changes or other strategic options. He would later secure a board seat to replace the chief executive officer and overhaul the board of directors. However, that did little to reinvigorate the company’s prospects as it remained under regulatory probe over its pricing policies and problems at the specialty pharmacy unit Philidor.

By the time Ackman walked away from the trade, he had incurred a loss of $3 billion as the stock had imploded by over 95%. In 2018, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) changed its name to Bausch Health Companies Inc. (NYSE:BHC).