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122-524: Valeant was originally founded in 1959, as ICN Pharmaceuticals by Milan Panić in California. During the 2010s, 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. Valeant

244-524: A private equity fund . Certain institutional investors have the scale necessary to develop a diversified portfolio of private-equity funds themselves, while others will invest through a fund of funds to allow a portfolio more diversified than one a single investor could construct. Returns on private-equity investments are created through one or a combination of three factors that include: debt repayment or cash accumulation through cash flows from operations, operational improvements that increase earnings over

366-626: A "Speech of Peace" address in front of the United Nations General Assembly . On 2 December 1992, Panić announced his intention to challenge Milošević for the Serbian presidency, campaigning on a platform of economic reforms and bringing a peaceful resolution to the Bosnian War . Panić contended that Milošević had crippled Serbia by allowing unemployment and inflation to rise, while inciting isolation and sanctions by

488-482: A $ 290 million IPO and Simon made approximately $ 66 million. The success of the Gibson Greetings investment attracted the attention of the wider media to the nascent boom in leveraged buyouts. Between 1979 and 1989, it was estimated that there were over 2,000 leveraged buyouts valued in excess of $ 250 million. During the 1980s, constituencies within acquired companies and the media ascribed

610-492: A Bill of Responsibilities Monument to their headquarters in 1990. He is a frequent supporter of California cultural institutions including the Los Angeles Opera, where he serves as a Vice Chairman and has sponsored season-opening performances since 2002. He has also provided charitable support to City of Hope Cancer Research and Treatment Center. Panić was married to mezzo-soprano opera singer Milena Kitic before

732-582: A Mexican generic drug company. In December 2009, Valeant announced its Canadian subsidiary would acquire Laboratoire Dr. Renaud, for C$ 23 million. In March 2010, Valeant announced its acquisition of a Brazilian generics and over-the-counter company for $ 28 million and manufacturing plant for a further $ 28 million. In April 2010, Valeant announced that its Canadian subsidiary would acquire Vital Science Corp. for C$ 10.5 million. In May 2010, Valeant acquired Aton Pharmaceuticals for $ 318 million. On September 28, 2010, Valeant merged with Biovail . The company retained

854-688: A New Zealand-based protein biologics manufacturing company. On 11 December 2014, the FDA approved MP Diagnostics HTLV Blot 2.4, the first FDA-licensed supplemental test for Human T-cell Lymphotropic Virus-I/II (HTLV-I/II). In October 2015, Panić announced the sale of MP Biomedicals to China-based Valiant Fine Chemicals Co. Ltd., a developer of chemical products. Panić provides philanthropic support to various universities, research programs, museums, political causes and charities through both his Milan Panić Jr. Foundation and MP Global Enterprises & Associates, LLC. As part of his philanthropic efforts, he has supported

976-663: A West German refugee camp. While in Germany, he enrolled in the PhD program at the University of Heidelberg and worked as a furniture mover. After receiving asylum in Germany several months after his initial arrival, Panić applied for a program that resettled refugees in the United States . Upon their acceptance into the program, he and Jelica moved to Fontana, California in early 1956. Panić worked in labs at Kaiser Steel and

1098-644: A Yugoslavian national champion and competed at the international level on prominent teams including the Yugoslavian national and Olympic teams. While traveling to an international cycling tournament in the Netherlands in 1955, Panić defected to Austria with his wife Jelica Panić ( née Narandžić.) After defecting to Austria in August 1955, Panić and his wife applied for asylum in Germany and moved to

1220-486: A bank (or other lender). To this, it adds $ 2bn of equity – money from its own partners and from limited partners . With this $ 11bn, it buys all the shares of an underperforming company, XYZ Industrial (after due diligence , i.e. checking the books). It replaces the senior management in XYZ Industrial, with others who set out to streamline it. The workforce is reduced, some assets are sold off, etc. The objective

1342-416: A bid of $ 112, a figure they felt certain would enable them to outflank any response by Kravis's team. KKR's final bid of $ 109, while a lower dollar figure, was ultimately accepted by the board of directors of RJR Nabisco. At $ 31.1 billion of transaction value, RJR Nabisco was by far the largest leveraged buyouts in history. In 2006 and 2007, a number of leveraged buyout transactions were completed that for

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1464-441: A broad asset allocation that includes traditional assets (e.g., public equity and bonds ) and other alternative assets (e.g., hedge funds , real estate, commodities ). US, Canadian and European public and private pension schemes have invested in the asset class since the early 1980s to diversify away from their core holdings (public equity and fixed income). Today pension investment in private equity accounts for more than

1586-557: A constitution, lifting U.N. sanctions, and pushing for the closure of concentration camps. In August 1992, he played a central role in the London International Conference on the Former Yugoslavia, which called for international attention to the country's worsening economic and political situation. At the conference, Panić submitted a twelve-point Plan for Peace. One month later, Panić delivered

1708-747: A dermatology unit of Sanofi . In January 2012, Valeant acquired Brazilian sports nutrition company Probiotica for R$ 150 million. In February 2012, Valeant acquired ophthalmic biotechnology company Eyetech Inc. In April 2012, Valeant acquired Pedinol. In April 2012, Valeant acquired assets from Atlantis Pharma in Mexico for $ 71 million. In May 2012, Valeant acquired AcneFree for $ 64 million plus milestone payments. In June 2012, Valeant acquired OraPharma for approximately $ 312 million with up to $ 144 million being paid in milestone payments. In August 2012, Valeant agreed to buy skin-care company Medicis Pharmaceutical for $ 2.6 billion. In January 2013, Valeant acquired

1830-854: A fine of $ 650 million – at the time, the largest fine ever levied under securities laws. Milken left the firm after his own indictment in March 1989. On 13 February 1990 after being advised by United States Secretary of the Treasury Nicholas F. Brady , the U.S. Securities and Exchange Commission (SEC), the New York Stock Exchange and the Federal Reserve , Drexel Burnham Lambert officially filed for Chapter 11 bankruptcy protection. The combination of decreasing interest rates, loosening lending standards and regulatory changes for publicly traded companies (specifically

1952-473: A foothold in the industry by acquiring niche pharmaceuticals and through the development of Ribavirin , an antiviral drug that became the standard treatment for hepatitis C . In 1994, ICN merged with SPI Pharmaceuticals Inc., Viratek Inc., and ICN Biomedicals Inc. On June 12, 2002, following a series of controversies, Panić was forced to retire under pressure from shareholders. In 2003, not long after Panić's ouster, ICN changed its name to Valeant. In 2006,

2074-502: A form of growth capital investment made into a publicly traded company . PIPE investments are typically made in the form of a convertible or preferred security that is unregistered for a certain period of time. The Registered Direct (RD) is another common financing vehicle used for growth capital. A registered direct is similar to a PIPE, but is instead sold as a registered security. Mezzanine capital refers to subordinated debt or preferred equity securities that often represent

2196-699: A key regulatory decision by the FDA. After a three-year investigation, the SEC dropped its inquiry in 1998 with no charges filed. In 1998, the FDA approved Virazole for the treatment of Hepatitis C in conjunction with another medication called interferon. Virazole eventually became a global standard treatment for multiple pediatric and adult medical conditions. Uses include the effective treatment of chronic Hepatitis C in conjunction with interferon, multiple viral fevers including influenza, parainfluenza, adenovirus, measles, Crimean-Congo hemorrhagic fever and Lassa fever, as well as renal impairment and thyroid cancer. During

2318-479: A large and active asset class and the private-equity firms, with hundreds of billions of dollars of committed capital from investors are looking to deploy capital in new and different transactions. As a result of the global financial crisis, private equity has become subject to increased regulation in Europe and is now subject, among other things, to rules preventing asset stripping of portfolio companies and requiring

2440-728: A major acquisition without a change of control of the business. Companies that seek growth capital will often do so in order to finance a transformational event in their life cycle. These companies are likely to be more mature than venture capital-funded companies, able to generate revenue and operating profits, but unable to generate sufficient cash to fund major expansions, acquisitions or other investments. Because of this lack of scale, these companies generally can find few alternative conduits to secure capital for growth, so access to growth equity can be critical to pursue necessary facility expansion, sales and marketing initiatives, equipment purchases, and new product development. The primary owner of

2562-607: A middle-class family. His father, a prominent government official, died when he was three years old, leaving Panić's mother to raise him and his sisters. Faced with a growing shortage of goods due to the Nazi occupation of Belgrade, Panić started a working vegetable farm to support his family and community. As a young student, he gravitated toward geography and chemistry, assembling a small laboratory in his room to conduct experiments. During World War II, Panić, then only 14 years old, joined Josip "Marshal" Tito ’s partisan resistance to fight

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2684-429: A notable slowdown in issuance levels in the high yield and leveraged loan markets with few issuers accessing the market. Uncertain market conditions led to a significant widening of yield spreads, which coupled with the typical summer slowdown led many companies and investment banks to put their plans to issue debt on hold until the autumn. However, the expected rebound in the market after 1 May 2007 did not materialize, and

2806-463: A number of the same tactics and target the same type of companies as more traditional leveraged buyouts and in many ways could be considered a forerunner of the later private-equity firms. Posner is often credited with coining the term " leveraged buyout " or "LBO". The leveraged buyout boom of the 1980s was conceived by a number of corporate financiers, most notably Jerome Kohlberg Jr. and later his protégé Henry Kravis . Working for Bear Stearns at

2928-476: A path of strategic sales, debt reduction, and organic growth. By January 2017, the company had sold its skincare brands to L'Oréal for $ 1.3 billion and its Dendreon biotech unit to Sanpower for $ 819.9 million. In June, the company sold iNova Pharmaceuticals for $ 910 million. In July, the company also divested Obagi Medical Products for $ 190 million. In November, it announced it would sell Sprout Pharmaceuticals back to its original owners, two years after acquiring

3050-400: A reputation as a ruthless corporate raider after his hostile takeover of TWA in 1985. Many of the corporate raiders were onetime clients of Michael Milken , whose investment banking firm, Drexel Burnham Lambert helped raise blind pools of capital with which corporate raiders could make a legitimate attempt to take over a company and provided high-yield debt ("junk bonds") financing of

3172-482: A stand-alone entity, or as add-on / tuck-in / bolt-on acquisitions , which would include companies with insufficient scale or other deficits. Leveraged buyouts involve a financial sponsor agreeing to an acquisition without itself committing all the capital required for the acquisition. To do this, the financial sponsor will raise acquisition debt, which looks to the cash flows of the acquisition target to make interest and principal payments. Acquisition debt in an LBO

3294-399: A third of all monies allocated to the asset class , ahead of other institutional investors such as insurance companies, endowments, and sovereign wealth funds. Most institutional investors do not invest directly in privately held companies , lacking the expertise and resources necessary to structure and monitor the investment. Instead, institutional investors will invest indirectly through

3416-482: A total of $ 748 billion in 2018. Thus, given the abundance of private capital available, companies no longer require public markets for sufficient funding. Benefits may include avoiding the cost of an IPO, maintaining more control of the company, and having the 'legroom' to think long-term rather than focus on short-term or quarterly figures. A new phenomenon in the Twenties are regulated platforms which fractionalise

3538-406: A transaction in which a company, business unit, or business asset is acquired from the current shareholders typically with the use of financial leverage . The companies involved in these transactions are typically mature and generate operating cash flows . Private-equity firms view target companies as either Platform companies, which have sufficient scale and a successful business model to act as

3660-432: Is stock in a private company that does not offer stock to the general public. In the field of finance , private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms, rather than the companies in which that they invest. Private-equity capital

3782-608: Is a Serbian businessman, humanitarian and former politician. He served as the Prime Minister of the Federal Republic of Yugoslavia from 1992 to 1993. During and after his time as prime minister, he campaigned for peace and democracy in the Balkan region. He ran for President of Serbia in 1992 , ultimately coming in second to Slobodan Milošević in an election marked by allegations of media and vote tampering by

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3904-531: Is a global producer of life science and diagnostic products, with operations in North America, Asia, Australia, and Europe. In October 2015, Panić announced the pending sale of MP Biomedicals to a Chinese chemical company, Valiant Fine Chemicals Co., Ltd. Panić pursues philanthropy personally and through his Milan Panić Jr. Foundation, as well as MP Global Enterprises & Associates, LLC. As part of his philanthropic efforts, he has sponsored scholarships at

4026-535: Is also the first civilian to serve as Defence Minister in the history of Serbia. Outside of his political and humanitarian activities, Panić built a lengthy career in the pharmaceutical and medical industries. He grew ICN Pharmaceuticals from a small operation in his garage into a global pharmaceutical corporation listed on the New York Stock Exchange , with over $ 672 million in annual sales across 90 countries at its peak. After retiring from ICN, he spun off an ICN subsidiary and renamed it MP Biomedicals. The company

4148-404: Is invested into a target company either by an investment management company ( private equity firm ), a venture capital fund, or an angel investor ; each category of investor has specific financial goals, management preferences, and investment strategies for profiting from their investments. Private equity provides working capital to the target company to finance the expansion of the company with

4270-418: Is often non-recourse to the financial sponsor and has no claim on other investments managed by the financial sponsor. Therefore, an LBO transaction's financial structure is particularly attractive to a fund's limited partners, allowing them the benefits of leverage, but limiting the degree of recourse of that leverage. This kind of financing structure leverage benefits an LBO's financial sponsor in two ways: (1)

4392-602: Is often most closely associated with fast-growing technology , healthcare and biotechnology fields, venture funding has been used for other more traditional businesses. Investors generally commit to venture capital funds as part of a wider diversified private-equity portfolio , but also to pursue the larger returns the strategy has the potential to offer. However, venture capital funds have produced lower returns for investors over recent years compared to other private-equity fund types, particularly buyout. The category of distressed securities comprises financial strategies for

4514-560: Is supporting an investigator-initiated Phase 2 study of Relistor . The drug is intended for patients with resectable squamous cell carcinoma of the head and neck. In July 2023, 404 Media reported that Bausch Health had been hacked and 1.6 million registration numbers that are issued by the United States' Drug Enforcement Administration to healthcare providers for the prescription of controlled substances were stolen and being used for ransom. Cybersecurity firm Mandiant attributed

4636-406: Is to increase the valuation of the company for an early sale. The stock market is experiencing a bull market , and XYZ Industrial is sold two years after the buy-out for $ 13bn, yielding a profit of $ 2bn. The original loan can now be paid off with interest of, say, $ 0.5bn. The remaining profit of $ 1.5bn is shared among the partners. Taxation of such gains is at the capital gains tax rates , which in

4758-717: The Carnegie Steel Company using private equity. Modern era private equity, however, is credited to Georges Doriot , the "father of venture capitalism" with the founding of ARDC and founder of INSEAD , with capital raised from institutional investors, to encourage private sector investments in businesses run by soldiers who were returning from World War II. ARDC is credited with the first major venture capital success story when its 1957 investment of $ 70,000 in Digital Equipment Corporation (DEC) would be valued at over $ 355 million after

4880-677: The MIT - Harvard Medical School Program and lectured on peacebuilding at George Washington University and University of Southern California . He is also a member of the President's cabinet at Chapman University , Vice Chairman and sponsor of the Los Angeles Opera , and frequent sponsor of California cultural institutions and charities. Panić was born on 20 December 1929 in Belgrade , Kingdom of Yugoslavia (present-day Serbia) into

5002-786: The Muscular Dystrophy Association and sponsored scholarships at the MIT-Harvard Medical School Program. Panić has lectured frequently on peacebuilding at George Washington University, University of Southern California, and Chapman University - where he is a member of the President's cabinet. Panić has provided support to the Freedoms Foundation in Valley Forge, PA, penning the Bill of Responsibilities and donating

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5124-533: The Republika Srpska . Since the end of the war, Panić has continued to push for democracy in the Yugoslav region by convening political activists and advocating in the media. In 1959, Panić launched ICN out of his garage just outside of Los Angeles , CA using $ 200 in startup capital. His initial business model was built upon synthesizing chemical compounds to sell to California research labs. During

5246-622: The Sarbanes–Oxley Act ) would set the stage for the largest boom private equity had seen. Marked by the buyout of Dex Media in 2002, large multibillion-dollar U.S. buyouts could once again obtain significant high yield debt financing and larger transactions could be completed. By 2004 and 2005, major buyouts were once again becoming common, including the acquisitions of Toys "R" Us , The Hertz Corporation , Metro-Goldwyn-Mayer and SunGard in 2005. As 2006 began, new "largest buyout" records were set and surpassed several times with nine of

5368-732: The U.S. Attorney's Office for the District of Massachusetts and the United States Attorney for the Southern District of New York in regards to an investigation on Valeant's "drug pricing, distribution and patient assistance program." The House Oversight Committee also requested documents from Valeant amid public concern around drug prices. In October 2015, the Federal Trade Commission began an investigation into Valeant's increasing control of

5490-507: The University of Southern California , where he also studied biochemistry. In 1959, Panić decided to start his own business, the International Chemical and Nuclear Corporation (ICN). In July 1992, Panić assumed the position of Prime Minister of the Federal Republic of Yugoslavia, at the request of Yugoslav President Dobrica Ćosić and Serbian President Slobodan Milošević. Panić set out goals of achieving peace, drafting

5612-431: The leveraged buyout of financially weak companies. Evaluations of the returns of private equity are mixed: some find that it outperforms public equity, but others find otherwise. Some key features of private equity investment include: The strategies private-equity firms may use are as follows, leveraged buyout being the most common. Leveraged buyout (LBO) refers to a strategy of making equity investments as part of

5734-470: The ribavirin compound, the earliest recorded broad spectrum antiviral agent. Chemists Joseph T. Witkovski and Ronald K. Robins were integral to the compound's creation. In 1985, ribavirin was approved under the name Virazole by the Food and Drug Administration for the treatment of respiratory syncytial virus (RSV), an upper respiratory tract disease that primarily affects children. In 1991, ICN created

5856-532: The " corporate raid " label to many private-equity investments, particularly those that featured a hostile takeover of the company, perceived asset stripping , major layoffs or other significant corporate restructuring activities. Among the most notable investors to be labeled corporate raiders in the 1980s included Carl Icahn , Victor Posner , Nelson Peltz , Robert M. Bass , T. Boone Pickens , Harold Clark Simmons , Kirk Kerkorian , Sir James Goldsmith , Saul Steinberg and Asher Edelman . Carl Icahn developed

5978-514: The 1960s, ICN marketed a generic version of L-Dopa , a widely used Parkinson's disease antidote. Panić led ICN over the following decades to develop the building blocks for several thousand potential new drugs. As ICN grew, Panić moved his operations from Pasadena, CA to a new research lab in Costa Mesa, CA and renamed the company ICN Pharmaceuticals. In 1967, ICN was officially listed on the New York Stock Exchange . In 1972, ICN discovered

6100-648: The 1986 buyout of the Revco drug stores, Walter Industries, FEB Trucking and Eaton Leonard. Additionally, the RJR Nabisco deal was showing signs of strain, leading to a recapitalization in 1990 that involved the contribution of $ 1.7 billion of new equity from KKR. In the end, KKR lost $ 700 million on RJR. Drexel reached an agreement with the government in which it pleaded nolo contendere (no contest) to six felonies – three counts of stock parking and three counts of stock manipulation . It also agreed to pay

6222-656: The 1990s, Panić resolved four sexual harassment suits filed by former employees of ICN. In 2002, ICN settled an SEC civil lawsuit related to misleading statements issued regarding their products. Panić decided to retire as CEO and Chairman of ICN in June 2002 after opposing shareholders took control of ICN's Board of Directors. Over the course of his career as Chairman, CEO, and President, Panić led ICN to annual sales in 90 countries exceeding $ 672 million (USD), with over 600 drugs in its portfolio by his final year in 2001. Panić maintains other business entities and investments both in

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6344-587: The AIDS virus. ICN settled with the FDA in 1991. In January 1988, ICN acquired 7.3% of Swiss pharmaceutical company Hoffman-La Roche, as part of a reported acquisition strategy to expand ICN's reach and marketing capabilities. Following the fall of the Berlin Wall , ICN acquired multiple pharmaceutical firms in Eastern Europe. In May 1991, ICN bought 75% of Galenika , Yugoslavia's largest drug maker at

6466-663: The House's Committee on Oversight and Reform, and had received document requests from the Autorite de Marches Financiers in Canada and the New Jersey State Bureau of Securities." In January 2016, presidential candidate Hillary Clinton said she would be "going after" Valeant for its price hikes, causing its stock price to fall 9 percent on the New York Stock Exchange . On April 27, 2016, Bill Ackman, J. Michael Pearson, and Howard Schiller were forced to appear before

6588-459: The Russian company Natur Produkt for $ 163 million. In March 2013, Valeant acquired Obagi Medical Products, Inc. In May 2013, the company acquired Bausch & Lomb from Warburg Pincus for $ 8.7 billion in a move to dominate the market for specialty contact lenses and related products. In January 2014, Valeant acquired Solta Medical for approximately $ 250 million. In May 2014, Nestle acquired

6710-542: The SEC $ 100,000 and $ 75,000, respectively. 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. In May 2022, Papa was replaced by Thomas Appio as the company's chief executive officer. Paulson replaced Papa as chairman of Bausch Health after being on its board of directors from June 2017 to May 2022. In May 2023, Judge Richard G. Andrews upheld

6832-564: The SPAG-2 (Small Particle Aerosol Generator) nebulizer to administer an aerosolized form of ribavirin during hospital treatments of specific viral infections. In 1985, ICN and the Eastman-Kodak company launched a six-year, $ 45 million joint venture to research drugs that slow, halt, or reverse the aging process. Between 1986 and 1987, the FDA contended that ICN had exaggerated Virazole's effectiveness in treating other illnesses including

6954-778: The U.S. and internationally. In 2003, after Panić's departure, ICN Pharmaceuticals changed its name to Valeant Pharmaceuticals International, Inc . After retiring from ICN, Panić bought a bioassay subsidiary of ICN Biomedicals and changed its name to MP Biomedicals. MP specializes in research and development of life science and diagnostic products. MP's global headquarters is located in Santa Ana, California, with its US headquarters and central distribution center located in Solon, Ohio . The company maintains global operations in North America, South America, Asia, Australia, and Europe. On 14 June 2010, Panić and MP acquired ICPBio International LTD.,

7076-460: The US private-equity industry were planted in 1946 with the founding of two venture capital firms: American Research and Development Corporation (ARDC) and J.H. Whitney & Company . Before World War II, venture capital investments (originally known as "development capital") were primarily the domain of wealthy individuals and families. In 1901 J.P. Morgan arguably managed the first leveraged buyout of

7198-600: The United States Senate Special Committee on Aging to answer to concerns about the repercussions for patients and the health care system faced with Valeant's business model. By April 2016, the market value of hedge fund holdings in Valeant had fallen by $ 7.3 billion. Hedge fund herding continued to incite hedge fund portfolio managers to continue to buy Valeant shares. From 2015 to 2017, Valeant shares plummeted more than 90 percent. This

7320-484: The United States are lower than ordinary income tax rates. Note that part of that profit results from turning the company around, and part results from the general increase in share prices in a buoyant stock market, the latter often being the greater component. Notes: Growth capital refers to equity investments, most often minority investments, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance

7442-429: The Valeant name and J. Michael Pearson as CEO, but was incorporated in Canada and temporarily kept Biovail's headquarters. Setting on a path of aggressive acquisitions, Pearson ultimately turned Valeant into a platform company that grows by systematically acquiring other companies. In February 2011, Valeant acquired PharmaSwiss S.A. for €350 million. In May 2011, former Biovail Corporation Chairman and CEO Eugene Melnyk

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7564-548: The asset class, to invest in private equity from older vintages than would otherwise be available to them. Secondaries also typically experience a different cash flow profile, diminishing the j-curve effect of investing in new private-equity funds. Often investments in secondaries are made through third-party fund vehicle, structured similar to a fund of funds although many large institutional investors have purchased private-equity fund interests through secondary transactions. Sellers of private-equity fund investments sell not only

7686-634: The assets making investment sizes of $ 10,000 or less possible. Although the capital for private equity originally came from individual investors or corporations, in the 1970s, private equity became an asset class in which various institutional investors allocated capital in the hopes of achieving risk-adjusted returns that exceed those possible in the public equity markets . In the 1980s, insurers were major private-equity investors. Later, public pension funds and university and other endowments became more significant sources of capital. For most institutional investors, private-equity investments are made as part of

7808-673: The breach to a threat actor, UNC5537, which is involved in the major Snowflake Inc. hack. ICN Pharmaceuticals ICN Biomedicals SPI Pharmaceuticals Viratek Coria Laboratories Ltd Xcel Pharmaceuticals (Acq 2005) DermaTech (Acq 2009) Dow Pharmaceutical Sciences Inc (Acq 2009) Tecnofarma (Acq 2009) Laboratoire Dr. Renaud (Acq 2009) Vital Science Corp (Acq 2010) Aton Pharmaceuticals (Acq 2010) Prestwick Pharmaceuticals (Acq 2008) Pharma PASS (Acq 2002) Milan Pani%C4%87 Milan Panić ( Serbian Cyrillic : Милан Панић , pronounced [mǐlan pǎːnit͡ɕ] ; born 20 December 1929)

7930-471: The business for $ 1 billion. 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. The company had divested itself of 13 non-core businesses, reducing its debt to $ 25 billion, and had settled or dismissed 70 pending lawsuits, including the Allergan insider trading case. On January 8, 2018,

8052-409: The buyouts. One of the final major buyouts of the 1980s proved to be its most ambitious and marked both a high-water mark and a sign of the beginning of the end of the boom. In 1989, KKR (Kohlberg Kravis Roberts) closed in on a $ 31.1 billion takeover of RJR Nabisco . It was, at that time and for over 17 years, the largest leveraged buyout in history. The event was chronicled in the book (and later

8174-420: The case in 2017. On April 1, 2015, Valeant completed the purchase of gastrointestinal treatment drug developer Salix Pharmaceuticals for $ 14.5 billion after outbidding Endo Pharmaceuticals . On the final day of trading, Salix shares traded for $ 172.81, giving a market capitalisation of $ 10.9 billion. After the acquisition, Valeant raised the price of the diabetes pill Glumetza drastically. In July 2015,

8296-532: The commercial rights to some of Valeant's products for $ 1.4 billion. In July 2014, Valeant acquired PreCision Dermatology Inc for $ 475 million. Along with hedge fund manager Bill Ackman , Valeant made a bid to acquire Allergan ; however, in November 2014, Allergan announced that it would be acquired by Actavis in a $ 66 billion transaction. Valeant and Pershing Square were subsequently accused of insider trading prior to their Allergan bid, and eventually settled

8418-465: The company announced it would acquire Mercury (Cayman) Holdings, the holding company of Amoun Pharmaceutical, one of Egypt's largest drugmakers, for $ 800 million. In August 2015, Valeant said it would purchase Sprout Pharmaceuticals Inc for $ 1 billion, a day after Sprout received approval to market the women's libido drug Addyi . In September 2015, Valeant licensed psoriasis drug Brodalumab from AstraZeneca for up to $ 445 million. In September 2015,

8540-666: The company announced its intention to acquire eye surgery product manufacturer Synergetics USA, for $ 192 million in order to strengthen the company's Bausch & Lomb division. In October 2015, the company's Bausch & Lomb division acquired Doctor's Allergy Formula for an undisclosed sum. On October 21, 2015, Citron Research founder Andrew Left , a short seller of Valeant shares, published claims that Valeant recorded false sales of products to specialty pharmacy Philidor Rx Services and its affiliates. These specialty companies were controlled by Valeant, and allegedly resulted in improper bookkeeping of revenues. In addition, by controlling

8662-642: The company announced that its Bausch + Lomb unit had received a CE Mark indicating conformity with health, safety, and environmental protection standards from the European Commission for the distribution of its Stellaris product in Europe. On December 16, 2019, the company settled a shareholder class action lawsuit under Section 11 of the U.S. Securities Act of 1933 , alleging the company misled investors about its business operations and financial performance, for approximately $ 1.21 billion. The company denied allegations of all wrongdoing as part of

8784-434: The company may not be willing to take the financial risk alone. By selling part of the company to private equity, the owner can take out some value and share the risk of growth with partners. Capital can also be used to effect a restructuring of a company's balance sheet, particularly to reduce the amount of leverage (or debt) the company has on its balance sheet . A private investment in public equity (PIPE), refer to

8906-697: The company received approval in the U.S. to market Cesamet (nabilone), a synthetic cannabinoid . The company also acquired the European rights to the drug for $ 14 million. In 2008, the Swedish pharmaceutical company Meda AB bought Western and Eastern Europe branches from Valeant for $ 392 million. In September 2008, Valeant acquired Coria Laboratories for $ 95 million. In November 2008, Valeant acquired DermaTech for $ 12.6 million. In January 2009, Valeant acquired Dow Pharmaceutical Sciences for $ 285 million. In July 2009, Valeant announced its acquisition of Tecnofarma,

9028-493: The company used to increase prescriptions for its own (expensive) drugs instead of generic substitutes. An important part of the growth strategy for Valeant under Michael Pearson had been the acquisition of medical and pharmaceutical companies and the subsequent price increases for their products. Valeant's strategy of exponential price increases on life-saving medicines was at the time described by Berkshire Hathaway vice chairman Charlie Munger as "deeply immoral" and "similar to

9150-405: The company's initial public offering in 1968 (a return of over 5,000 times its investment and an annualized rate of return of 101%). It is commonly noted that the first venture-backed startup is Fairchild Semiconductor , which produced the first commercially practicable integrated circuit, funded in 1959 by what would later become Venrock Associates . The first leveraged buyout may have been

9272-608: The company's revenue totalled $ 8.76 billion (7.9% growth compared to 2022). Adjusted EBITDA totalled $ 3.01 billion (unchanged from 2022). Net debt was $ 21.65 billion, excluding $ 947 million on the balance sheet (5.7 times the company's market value). Three of Bausch Health's four operating segments increased revenue, with the highest result coming from Salix Pharmaceuticals (8% growth ), the company's largest business (nearly half of revenue, 59% of segment profit). About 80% of Salix's sales are Xifaxan , an antibiotic for treating diarrhea . Bausch Health Companies ( Salix Pharmaceuticals )

9394-681: The couple divorced; together they had a son. Panić was awarded the Ellis Island Medal of Honor by the Statue of Liberty-Ellis Island Foundation on 27 October 1986. He was named "European of the Year" in 1992 by the Wall Street Journal Europe , which cited his efforts while serving Yugoslavian Prime Minister to introduce democratic, free market reforms, bring peace, and galvanize opposition to Slobodan Milošević. Panić

9516-586: The court's original ruling, which blocks the FDA from approving Norwich Pharmaceuticals ' 550 mg rifaximin generic until October 2029. Judge Andrews' decision bolsters his previous ruling that Norwich's abbreviated new drug application for rifaximin infringed on Bausch Health's Xifaxan patents for the reduction in risk of hepatic encephalopathy recurrence. In June 2023, the company's oral health business OraPharma partnered with Alex Rodriguez to launch its "Cover Your Bases" gum disease awareness campaign. In 2023,

9638-460: The development of new products and services, restructuring of operations, management, and formal control and ownership of the company. As a financial product, the private-equity fund is a type of private capital for financing a long-term investment strategy in an illiquid business enterprise. Private equity fund investing has been described by the financial press as the superficial rebranding of investment management companies who specialized in

9760-434: The election results through improper use of state media and vote tampering. Following his term as prime minister, Panić stayed involved in the effort to restore peace and democracy in the region. In December 1993, he began correspondence with U.S. President Bill Clinton regarding a proposed peace summit with all heads of state of the former Yugoslavia. In 1994, he met with Clinton and his advisers in California to discuss

9882-409: The first time surpassed the RJR Nabisco leveraged buyout in terms of nominal purchase price. However, adjusted for inflation, none of the leveraged buyouts of the 2006–2007 period would surpass RJR Nabisco. By the end of the 1980s the excesses of the buyout market were beginning to show, with the bankruptcy of several large buyouts including Robert Campeau 's 1988 buyout of Federated Department Stores ,

10004-476: The formation of Kohlberg Kravis Roberts in that year. In January 1982, former United States Secretary of the Treasury William E. Simon and a group of investors acquired Gibson Greetings , a producer of greeting cards, for $ 80 million, of which only $ 1 million was rumored to have been contributed by the investors. By mid-1983, just sixteen months after the original deal, Gibson completed

10126-571: The growing Nazi influence in Yugoslavia. After returning from military service, he resumed his secondary studies in biochemistry at the Belgrade Faculty of Technology. Panić enrolled as a medical student at the University of Belgrade medical school before transferring to the biochemistry degree program. Panić was an avid cyclist from his youth into early adulthood. Over the course of his cycling career, he eventually rose to become

10248-549: The international community. Panić appealed directly to Serbian youth and older voters seeking a compromise in the ongoing conflict that included recognition of Croatia and Bosnia-Herzegovina in their current borders. In the 1992 Serbian general election , Panić came in second behind Milošević, receiving 32% of votes cast. In the aftermath, observers at the Helsinki Commission, political experts, and journalists alleged that Milošević and his supporters had manipulated

10370-434: The investments in the fund but also their remaining unfunded commitments to the funds. Other strategies that can be considered private equity or a close adjacent market include: As well as this to compensate for private equities not being traded on the public market, a private-equity secondary market has formed, where private-equity investors purchase securities and assets from other private equity investors. The seeds of

10492-421: The investor only needs to provide a fraction of the capital for the acquisition, and (2) the returns to the investor will be enhanced, as long as the return on assets exceeds the cost of the debt. As a percentage of the purchase price for a leverage buyout target, the amount of debt used to finance a transaction varies according to the financial condition and history of the acquisition target, market conditions,

10614-454: The lack of market confidence prevented deals from pricing. By the end of September, the full extent of the credit situation became obvious as major lenders including Citigroup and UBS AG announced major writedowns due to credit losses. The leveraged finance markets came to a near standstill during a week in 2007. As 2008 began, lending standards tightened and the era of "mega-buyouts" came to an end. Nevertheless, private equity continues to be

10736-577: The launch of startup companies to late stage and growth capital that is often used to fund expansion of existing business that are generating revenue but may not yet be profitable or generating cash flow to fund future growth. Entrepreneurs often develop products and ideas that require substantial capital during the formative stages of their companies' life cycles. Many entrepreneurs do not have sufficient funds to finance projects themselves, and they must, therefore, seek outside financing. The venture capitalist's need to deliver high returns to compensate for

10858-402: The launch of a seed or startup company, early-stage development, or expansion of a business. Venture investment is most often found in the application of new technology, new marketing concepts and new products that do not have a proven track record or stable revenue streams. Venture capital is often sub-divided by the stage of development of the company ranging from early-stage capital used for

10980-449: The levels that traditional lenders are willing to provide through bank loans. In compensation for the increased risk, mezzanine debt holders require a higher return for their investment than secured or other more senior lenders. Mezzanine securities are often structured with a current income coupon. Venture capital (VC) is a broad subcategory of private equity that refers to equity investments made, typically in less mature companies, for

11102-583: The life of the investment and multiple expansion, selling the business for a higher price than was originally paid. A key component of private equity as an asset class for institutional investors is that investments are typically realized after some period of time, which will vary depending on the investment strategy. Private-equity investment returns are typically realized through one of the following avenues: Large institutional asset owners such as pension funds (with typically long-dated liabilities), insurance companies, sovereign wealth and national reserve funds have

11224-762: The loan debt. Lewis Cullman's acquisition of Orkin Exterminating Company in 1964 is often cited as the first leveraged buyout. Similar to the approach employed in the McLean transaction, the use of publicly traded holding companies as investment vehicles to acquire portfolios of investments in corporate assets was a relatively new trend in the 1960s popularized by the likes of Warren Buffett ( Berkshire Hathaway ) and Victor Posner ( DWG Corporation ) and later adopted by Nelson Peltz ( Triarc ), Saul Steinberg (Reliance Insurance) and Gerry Schwartz ( Onex Corporation ). These investment vehicles would utilize

11346-455: The major banking players of the day, including Morgan Stanley , Goldman Sachs , Salomon Brothers , and Merrill Lynch were actively involved in advising and financing the parties. After Shearson's original bid, KKR quickly introduced a tender offer to obtain RJR Nabisco for $ 90 per share—a price that enabled it to proceed without the approval of RJR Nabisco's management. RJR's management team, working with Shearson and Salomon Brothers, submitted

11468-439: The most junior portion of a company's capital structure that is senior to the company's common equity . This form of financing is often used by private-equity investors to reduce the amount of equity capital required to finance a leveraged buyout or major expansion. Mezzanine capital, which is often used by smaller companies that are unable to access the high yield market , allows such companies to borrow additional capital beyond

11590-466: The movie), Barbarians at the Gate : The Fall of RJR Nabisco . KKR would eventually prevail in acquiring RJR Nabisco at $ 109 per share, marking a dramatic increase from the original announcement that Shearson Lehman Hutton would take RJR Nabisco private at $ 75 per share. A fierce series of negotiations and horse-trading ensued which pitted KKR against Shearson and later Forstmann Little & Co. Many of

11712-630: The notification and disclosure of information in connection with buy-out activity. From 2010 to 2014 KKR , Carlyle , Apollo and Ares went public. Starting from 2018 these companies converted from partnerships into corporations with more shareholder rights and the inclusion in stock indices and mutual fund portfolios. But with the increased availability and scope of funding provided by private markets, many companies are staying private simply because they can. McKinsey & Company reports in its Global Private Markets Review 2018 that global private market fundraising increased by $ 28.2 billion from 2017, for

11834-642: The pharmacy services offered by Philidor, Valeant allegedly steered Philidor's customers to expensive drugs sold by Valeant. One alleged practice entailed Valeant employees directly managing Philidor's business operations while posing as Philidor employees, and with all written communication under fictitious names. Valeant responded that the allegations by Citron Research were "erroneous". On October 30, 2015, Valeant said that it would cut ties with Philidor in response to allegations of aggressive billing practices. Walgreens Boots Alliance Inc, owner of Walgreens , took over distribution for Valeant. In 2018, Gary Tanner, who

11956-411: The previous record set in 2000 by 22% and 33% higher than the 2005 fundraising total The following year, despite the onset of turmoil in the credit markets in the summer, saw yet another record year of fundraising with $ 302 billion of investor commitments to 415 funds Among the mega-buyouts completed during the 2006 to 2007 boom were: EQ Office , HCA , Alliance Boots and TXU . In July 2007,

12078-626: The production of rigid gas permeable contact lenses. Valeant's acquisition of Bausch & Lomb in 2013, and Paragon Vision Services in 2015, is alleged to have given the company control of over 80% of the production pipeline for hard contact lenses. A series of unilateral price increases beginning in Fall 2015 spurred the FTC's investigation. On November 15, 2016, Valeant agreed to divest itself of Paragon Holdings and Pelican Products to settle charges that its May 2015 acquisition of Paragon reduced competition for

12200-415: The products Retin-A Micro, Ertaczo , and Renova, also known as tretinoin . In August 2011, Valeant acquired 87.2% of the outstanding shares of Sanitas Group for €314 million. In December 2011, Valeant acquired iNova Pharmaceuticals for A$ 625 million from Australian private equity firms Archer Capital with additional milestone payments of up to A$ 75 million. In December 2011, Valeant acquired Dermik,

12322-537: The profitable investment of working capital into the corporate equity and the securities of financially weak companies. The investment of private-equity capital into distressed securities is realised with two financial strategies: Moreover, the private-equity investment strategies of hedge funds also include actively trading the loans held and the bonds issued by the financially-weak target companies. Secondary investments refer to investments made in existing private-equity assets. These transactions can involve

12444-812: The proposal further. Following additional discussions over the next two years, in which Panić proposed a Balkans peace conference, the Clinton Administration convened the Conference on Establishing Peace at Wright-Patterson Air Force Base in Dayton, Ohio, USA. The Conference culminated in the signing of the Dayton Accords on 21 November 1995, which brought an end to the Bosnian War by dividing Bosnia and Herzegovina into two separate entities: The Federation of Bosnia and Herzegovina and

12566-408: The public outrage associated with massive price increases introduced by Valeant. At the same time, a new ticker symbol , BHC replaced VRX . In 1959, Yugoslavian immigrant Milan Panić , who had defected to the US three years earlier, founded ICN Pharmaceuticals (International Chemical and Nuclear Corporation) in his Pasadena garage. Panić ran the company for 43 years, during which ICN established

12688-504: The purchase by McLean Industries, Inc. of Pan-Atlantic Steamship Company in January 1955 and Waterman Steamship Corporation in May 1955 Under the terms of that transaction, McLean borrowed $ 42 million and raised an additional $ 7 million through an issue of preferred stock . When the deal closed, $ 20 million of Waterman cash and assets were used to retire $ 20 million of

12810-434: The risk of these investments makes venture funding an expensive capital source for companies. Being able to secure financing is critical to any business, whether it is a startup seeking venture capital or a mid-sized firm that needs more cash to grow. Venture capital is most suitable for businesses with large up-front capital requirements which cannot be financed by cheaper alternatives such as debt . Although venture capital

12932-399: The ruling party. Panić became Prime Minister of Yugoslavia while an American citizen. The legality of retaining US citizenship while accepting this office has been questioned based on a Constitutional prohibition of a US citizen accepting office on behalf of a foreign nation. Panić is the first US citizen to occupy a high-level political position in a foreign country since Golda Meir . Panić

13054-399: The sale of private equity fund interests or portfolios of direct investments in privately held companies through the purchase of these investments from existing institutional investors . By its nature, the private-equity asset class is illiquid, intended to be a long-term investment for buy and hold investors. Secondary investments allow institutional investors, particularly those new to

13176-674: The sale of FDA-approved "buttons", the polymer discs used to make gas permeable contact lenses. In their 2015 annual report filed on April 29, 2016, Valeant said that it was the "subject of investigations" by the Securities and Exchange Commission, the U.S. Attorney's Offices in Massachusetts and New York, the state of Texas, the North Carolina Department of Justice , the Senate's Special Committee on Aging, and

13298-427: The settlement. On July 31, 2020, the SEC announced that Bausch Health had agreed to pay a $ 45 million penalty to settle charges of improper revenue recognition and misleading disclosures in SEC filings and earnings presentations. It also announced that Pearson would pay $ 250,000 in civil penalties to the SEC, as well as $ 450,000 to reimburse Valeant. Howard Schiller and Tanya Carro, two other executives who settled, paid

13420-469: The three Bear Stearns bankers would complete a series of buyouts including Stern Metals (1965), Incom (a division of Rockwood International, 1971), Cobblers Industries (1971), and Boren Clay (1973) as well as Thompson Wire, Eagle Motors and Barrows through their investment in Stern Metals. By 1976, tensions had built up between Bear Stearns and Kohlberg, Kravis and Roberts leading to their departure and

13542-463: The time, Kohlberg and Kravis along with Kravis' cousin George Roberts began a series of what they described as "bootstrap" investments. Many of these companies lacked a viable or attractive exit for their founders as they were too small to be taken public and the founders were reluctant to sell out to competitors and so a sale to a financial buyer could prove attractive. In the following years

13664-463: The time. After eight months, the new subsidiary ICN-Galenika was producing revenues of $ 364 million. In April 1992, ICN Pharmaceuticals and ICN-Galenika partially financed a $ 100,000 initiative to vaccinate children in the Yugoslav province of Kosovo. In 1995, the Securities and Exchange Commission (SEC) investigated ICN over shareholder concerns related to Mr. Panić's sale of company stock before

13786-403: The top ten buyouts at the end of 2007 having been announced in an 18-month window from the beginning of 2006 through the middle of 2007. In 2006, private-equity firms bought 654 U.S. companies for $ 375 billion, representing 18 times the level of transactions closed in 2003. Additionally, U.S.-based private-equity firms raised $ 215.4 billion in investor commitments to 322 funds, surpassing

13908-411: The turmoil that had been affecting the mortgage markets , spilled over into the leveraged finance and high-yield debt markets. The markets had been highly robust during the first six months of 2007, with highly issuer friendly developments including PIK and PIK Toggle (interest is " P ayable I n K ind") and covenant light debt widely available to finance large leveraged buyouts. July and August saw

14030-516: The willingness of lenders to extend credit (both to the LBO's financial sponsors and the company to be acquired) as well as the interest costs and the ability of the company to cover those costs. Historically the debt portion of a LBO will range from 60 to 90% of the purchase price. Between 2000 and 2005, debt averaged between 59.4% and 67.9% of total purchase price for LBOs in the United States. A private-equity fund, ABC Capital II, borrows $ 9bn from

14152-557: The worst abuses in for-profit education." This strategy had also attracted the attention of regulators in the United States, particularly after the publication in The New York Times of an article on price gouging of specialty drugs. In September 2015, an influential group of politicians criticized Valeant on its pricing strategies. The company raised prices on all its brand name drugs 66% in 2015, five times more than its closest industry peer. The cost of Valeant flucytosine

14274-627: Was 10,000% higher in the United States than in Europe. In late September 2015, members of the United States House Committee on Oversight and Government Reform urged the Committee to subpoena Valeant for their documents regarding the sharp increases in the price of "two heart medications it had just bought the rights to sell: Nitropress and Isuprel . Valeant had raised the price of Nitropress by 212% and Isuprel by 525%". By October 2015, Valeant had received subpoenas from

14396-489: Was a former Valeant executive, and Andrew Davenport, the former chief executive of Philidor Rx Services, were prosecuted over a kickback scheme. They were sentenced to a year in prison after being convicted on four charges, including wire fraud and conspiracy to commit money laundering. They were also ordered to forfeit $ 9.7 million in kickbacks. Tanner had been responsible for managing Valeant's relationship with Philidor as well as Valeant's "alternative fulfillment" program, which

14518-676: Was banned from senior roles at public companies in Canada for five years and penalized to pay $ 565,000 by the Ontario Securities Commission . In the year before the merger with Valeant, Melnyk had settled by the United States Securities and Exchange Commission (SEC), and agreed to pay a civil penalty of $ 150,000 after having previously paid $ 1 million to settle other claims with the SEC. In July 2011, Valeant acquired Ortho Dermatologics from Janssen Pharmaceuticals for $ 345 million. The acquisition included

14640-447: Was involved in a number of controversies surrounding drug price hikes and the use of a specialty pharmacy for the distribution of its drugs. This 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 July 2018, the name of the company was changed to Bausch Health Companies Inc., in order to distance itself from

14762-457: Was later featured in episode 3 of the first season of the Netflix documentary Dirty Money . 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. On April 25, 2016, Valeant named Perrigo chief executive Joseph Papa as a permanent replacement for Pearson, and entrusted him with turning around the company. Papa set on

14884-692: Was presented the Chamber Global Award by the Chamber of Commerce Belgium-Luxembourg South-Eastern Europe in Brussels on 17 December 2002. In February 2015, the Lifeline Humanitarian Organization of New York awarded Panić with a lifetime achievement award for his philanthropic support of academic, cultural, political, and relief organizations around the world. Private equity Private equity ( PE )

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