Valeant pharmaceuticals was a darling of the Pharmaceuticals space in the U.S and Canada.
Its model seemed flawless with it focusing on acquiring products and companies and demonstrating pricing power. Example it would hike prices for key drugs which it acquired and then marketed by 1000 % (13.50 $ to 750 $ for a particular drug).
This also meant messing with the public. Was this a sustainable business model? So the underlying lesson to learn is that if a business considers manipulating prices of its products, at some point in time it will certainly be noticed by customers, regulators and policy makers .
Valeant lost its 90% market cap from peak and many investors who believed in the story suffered from cost fallacy and illusion of hope and recovery.