Pershing Square Activist Presentation Deck
Valeant: Recent Events
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Valeant Share Price - 9/1/15 to 10/29/15
9/20/15: NYT article on price
increases in pharma, with focus on
Turing Pharmaceuticals after
>5,000% drug price increase
A
9/21/15: Hillary Clinton
tweets about pharma
"price gouging"
Sep 1 Sep 8
B
9/28/15: House Dems request
Republican chairman subpoena VRX
regarding price increases; Senator
McCaskill releases letter to VRX
10/14/15: Valeant discloses
receipt of two Federal
subpoenas regarding patient
assistance programs among
other topics
10/14/15: Valeant
responds to Senator
McCaskill
10/19/15: Valeant
announces strong Q3
earnings but investors are
confused by VRX's
perceived "strategy shift"
Sep 15 Sep 22 Sep 29
Oct 6 Oct 13 Oct 20
Oct 27
Pershing Square's Perspectives on Key Topics
A Price Increases
Volume is primary growth driver for ~90% of
Valeant's business
Media reports are focused on gross prices; net
realized prices to manufacturer are much lower
- Drugs improve health outcomes and can
reduce overall cost of healthcare; returns on
investment critical to drug innovation
B VRX's Perceived "Strategy Shift"
VRX's strategy is multi-faceted, focused on
creating shareholder value, adapts with
opportunities:
ā
M&A: No more "price increase" deals (only
4 of 150 historical acquisitions)
R&D: Increasing modestly to pursue
attractive late-stage development
opportunities
Note: The performance of Valeant's share price is provided for illustrative purposes only and is not an indication of future returns of the Pershing Square funds.
Source: Bloomberg.
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