Long Term Returns of ValueAct Capital’s 5 Activist Targets

1. Bausch Health Companies Inc (NYSE:BHC)

Quarter first owned: Q3 2006

Quarter sold: Q3 2022

Last but not least among ValueAct Capital’s long-term activist targets is Bausch Health Companies Inc (NYSE:BHC), a healthcare company previously known as Valeant Pharmaceuticals. As the company faced a lot of issues back in 2016, ValueAct managed to sell a huge chunk of the stock months before the stock tanked. At one point in 2015, ValueAct’s profit on the investment amounted to more than 2,000%, as it managed to acquire shares at around $11 apiece and the stock was trading at $250.

As a major investor in Valeant, ValueAct was the key decision-maker behind the appointment of former CEO Michael Pearson, under whose helm the company first surged, but then dove into the ground. At the same time, ValueAct was against the hostile takeover of Allergan, which was driven by another activist investor, Bill Ackman. According to a Reuters interview, Jeff Ubben, who was on Valeant’s board said that while the combination of Valeant and Allergan could prove fruitful, a bidding war for the botox maker would not be worth it. In the end Allergan entered into a deal to be acquired by Actavis. This marked the beginning of troubled times for Valeant, with CEO Pearson later resigning and the company eventually transforming into Bausch Health Companies Inc (NYSE:BHC). ValueAct maintained a position in Bausch Health Companies Inc (NYSE:BHC) and even had a board seat until June 2021, leaving the company as it spun-off its eye care business into Bausch + Lomb Corp (NYSE:BLCO).