Bausch Health

Bausch Health Companies Inc. (formerly Valeant Pharmaceuticals) is a multinational specialty pharmaceutical company based in Laval, Canada. It develops, manufactures and markets pharmaceutical products and branded generic drugs, primarily for skin diseases, gastrointestinal disorders, eye health, and neurology. Bausch Health owns Bausch & Lomb, a supplier of eye health products.

The company was founded in California, in 1959, as ICN Pharmaceuticals. Under the leadership of J. Michael Pearson, Valeant adopted a strategy of buying up other pharmaceutical companies which manufactured effective medications for a variety of medical problems and then increasing the price of those medications. As a result, the company grew rapidly and in 2015 was the most valuable company in Canada. Its largest acquisitions were Bausch & Lomb, in 2013, and Salix Pharmaceuticals, in 2015. Valeant also tried to acquire Actavis and Cephalon. An attempted merge with Allergan, in 2014, failed and resulted in the company being sued for insider trading prior to their bid.

In 2015, Valeant was involved in a number of controversies surrounding drug price hikes and the use of a specialty pharmacy for the distribution of its drugs, which led to an investigation by the U.S. Securities and Exchange Commission, causing its stock price to plummet more than 90 percent from its peak, while its debt surpassed $30 billion.

In 2016, Pearson was ousted and replaced by Joseph C. Papa, while investor Bill Ackman joined the board. In 2017, Ackman's Pershing Square fund, which held a major stake in the company, sold out for a reported loss of $2.8 billion. Following Ackman's exit, Paulson & Co. increased its stake in the company, became its largest shareholder, with its founder, John Paulson, joining the board, and vowing to rebuild the company's core franchises and to reduce its debt.

Under Papa's leadership, by early 2018, the company had become profitable again; had settled the Allergan case for less than expected; and had lowered its debt by $6.5 billion. In July 2018, the name of the company was changed to Bausch Health Companies Inc., in order to distance itself from the public outrage associated with massive price increases introduced by Valeant. At the same time, a new ticker symbol, BHC replaced VRX.

The company was featured in episode 3 of the first season of the Netflix documentary Dirty Money. “Drug Short” explains how Valeant lost 90 percent of its value between 2015 and 2016 taking down billionaires in the process and making an internet heroine of Fahmi Quadir, and a handful of other short sellers. They correctly bet that "the drug company’s price gouging, questionable tactics, and massive debt burden could not be sustained".