1
00:00:01,080 --> 00:00:04,080
Speaker 1: You're listening to Taking Stock with Kathleen Hayes and Pim

2
00:00:04,200 --> 00:00:08,879
Speaker 1: Fox on Bloomberg Radio. Breaking news from a Latin America,

3
00:00:09,400 --> 00:00:14,319
Speaker 1: Columbia's Central Bank, Columbia, I should say, raising their lending

4
00:00:14,400 --> 00:00:17,079
Speaker 1: rate to seven percent from six and a half percent.

5
00:00:17,160 --> 00:00:20,640
Speaker 1: That's a fifty basis point move, much more than analysts

6
00:00:20,640 --> 00:00:23,759
Speaker 1: have been forecasting. As inflation surges to its highest level

7
00:00:23,800 --> 00:00:26,759
Speaker 1: since two thousand one after the worst drought in decades.

8
00:00:26,800 --> 00:00:29,280
Speaker 1: A big story will be covering in the three o'clock

9
00:00:29,440 --> 00:00:32,239
Speaker 1: Wall Street Time hour of Taking Stock. Now, let's get

10
00:00:32,280 --> 00:00:35,960
Speaker 1: to another very big story today. Valiant Pharmaceuticals attempting to

11
00:00:35,960 --> 00:00:38,239
Speaker 1: put the worst of its problems behind it today announcing

12
00:00:38,280 --> 00:00:40,920
Speaker 1: a shake up of its board and filling along awaited

13
00:00:40,960 --> 00:00:44,120
Speaker 1: annual report where it excuse me, filing along awaited annual

14
00:00:44,120 --> 00:00:47,400
Speaker 1: report where it promised significant changes to its strategy and

15
00:00:47,479 --> 00:00:51,239
Speaker 1: better oversight of its executives. This Credoholo joins US now

16
00:00:51,320 --> 00:00:56,000
Speaker 1: specialty Pharma and Biotech analyst for Bloomberg Intelligence. So, Liz,

17
00:00:56,120 --> 00:00:59,240
Speaker 1: a big move from Valiant. Yeah, I would say that,

18
00:00:59,360 --> 00:01:02,639
Speaker 1: you know, the company had been saying April nine, where

19
00:01:02,680 --> 00:01:04,200
Speaker 1: we are going to file by them, even though they

20
00:01:04,200 --> 00:01:06,759
Speaker 1: had much more of a cushion with their lenders, so

21
00:01:07,480 --> 00:01:11,959
Speaker 1: in terms of keeping its integrity, which is already completely

22
00:01:11,959 --> 00:01:14,759
Speaker 1: battered at this point, they really needed to file by today,

23
00:01:14,760 --> 00:01:18,240
Speaker 1: So meeting that deadline was certainly a positive. I think

24
00:01:18,319 --> 00:01:20,640
Speaker 1: that the company is very focused on the fact that

25
00:01:20,680 --> 00:01:22,880
Speaker 1: they have new management in place. Now. We have Joe

26
00:01:22,920 --> 00:01:26,520
Speaker 1: Papo joining from Parago. He's slated to begin his reign

27
00:01:26,760 --> 00:01:29,760
Speaker 1: in May. And with the new board shake up, you know,

28
00:01:29,800 --> 00:01:33,240
Speaker 1: they're kind of saying we are an entirely new company.

29
00:01:33,520 --> 00:01:38,679
Speaker 1: Any update on the investigation that is ongoing by the SEC. Yeah,

30
00:01:38,720 --> 00:01:42,240
Speaker 1: so that is still ongoing. We saw the Senate price

31
00:01:42,280 --> 00:01:45,840
Speaker 1: probe earlier this week as well, and in that discussion

32
00:01:46,160 --> 00:01:48,600
Speaker 1: Bill Ackman essentially said, I'm going to go back to

33
00:01:48,600 --> 00:01:51,320
Speaker 1: the board. We're going to discuss slashing the price of

34
00:01:51,360 --> 00:01:54,120
Speaker 1: some of these drugs that we've increased. He suggested perhaps

35
00:01:54,120 --> 00:01:58,080
Speaker 1: a thirty percent cut across the board. But again, I

36
00:01:58,080 --> 00:01:59,920
Speaker 1: mean this is on products that have gone up five

37
00:02:00,640 --> 00:02:03,560
Speaker 1: so at that point, what's giving it back not really

38
00:02:03,560 --> 00:02:07,200
Speaker 1: all that great. That's what would you say. The biggest

39
00:02:07,280 --> 00:02:13,320
Speaker 1: challenge is for this this new management team. One, I

40
00:02:13,360 --> 00:02:16,400
Speaker 1: think they need to get investors back on their side.

41
00:02:16,400 --> 00:02:19,639
Speaker 1: There are certainly people who have been burned by this company,

42
00:02:19,800 --> 00:02:21,920
Speaker 1: yet there are still many that are loyal. But they

43
00:02:21,919 --> 00:02:24,280
Speaker 1: still need to convince them that they're capable of turning

44
00:02:24,280 --> 00:02:27,079
Speaker 1: the ship around. But I think one of the bigger

45
00:02:27,120 --> 00:02:29,560
Speaker 1: things is really going to be returning to the growth

46
00:02:29,639 --> 00:02:31,600
Speaker 1: levels that they had seen. I mean, that was what

47
00:02:31,720 --> 00:02:34,840
Speaker 1: had attracted investors to begin with. They were this m

48
00:02:34,840 --> 00:02:37,760
Speaker 1: and A powerhouse picking up assets that were, you know,

49
00:02:38,040 --> 00:02:41,840
Speaker 1: they claimed undervalued, but essentially they increased the price to

50
00:02:41,919 --> 00:02:44,960
Speaker 1: drive sales. I don't think we'll see that same level

51
00:02:45,440 --> 00:02:48,120
Speaker 1: of growth that investors are used to, so they need

52
00:02:48,160 --> 00:02:50,680
Speaker 1: to convince them that this new model is something that's

53
00:02:50,720 --> 00:02:53,280
Speaker 1: still attractive. It's not going to be the same as

54
00:02:53,280 --> 00:02:58,120
Speaker 1: one Investors had initially gone after borrow money, spend the

55
00:02:58,160 --> 00:03:02,919
Speaker 1: money on other pharmaceutic golden drug companies, lay people off

56
00:03:02,960 --> 00:03:05,880
Speaker 1: for cut costs, increased the price of drugs. That was

57
00:03:05,960 --> 00:03:08,679
Speaker 1: kind of the business models that accurate absolutely. I mean,

58
00:03:08,720 --> 00:03:11,800
Speaker 1: that's that's the harsh reality of it. How do you

59
00:03:11,880 --> 00:03:16,080
Speaker 1: do a one eight on that now, while at the

60
00:03:16,160 --> 00:03:20,680
Speaker 1: same time throwing X executives under the bus. And I'm

61
00:03:20,680 --> 00:03:25,400
Speaker 1: thinking of Howard Schiller and Tanya Carol. Right, these are

62
00:03:25,639 --> 00:03:30,119
Speaker 1: Howard Schiller was the former CFO and uh Tanya carrout

63
00:03:30,160 --> 00:03:33,000
Speaker 1: of former corporate controller. Yeah, and Schiller took the rain

64
00:03:33,040 --> 00:03:35,920
Speaker 1: when Pearson went into the hospital, so you know, he's

65
00:03:36,200 --> 00:03:39,000
Speaker 1: he's been around, he's been there when the company needed him,

66
00:03:39,040 --> 00:03:41,920
Speaker 1: and now he's you know, the scapegoat on pretty much

67
00:03:41,920 --> 00:03:46,120
Speaker 1: all things. I think the difficulty will be that most

68
00:03:46,160 --> 00:03:47,720
Speaker 1: of their products, when you look at them, they're not

69
00:03:47,760 --> 00:03:50,520
Speaker 1: like the traditional blockbuster that you might think of. So

70
00:03:50,600 --> 00:03:53,120
Speaker 1: one of their leading drugs that they recently acquired from

71
00:03:53,200 --> 00:03:57,280
Speaker 1: salex for it's called FAS and it's for IBS, essentially

72
00:03:57,360 --> 00:03:59,880
Speaker 1: brought in two fifty million dollars last year. That's not

73
00:04:00,280 --> 00:04:01,920
Speaker 1: you know, the kind of products that we're seeing out

74
00:04:01,920 --> 00:04:04,960
Speaker 1: of someone like Fiser, who's key product is something like

75
00:04:05,040 --> 00:04:08,760
Speaker 1: seven billion dollars. These are it's a collection of very

76
00:04:08,800 --> 00:04:12,920
Speaker 1: small products. I just wanted to say, and I'll take

77
00:04:13,120 --> 00:04:17,200
Speaker 1: responsibility for it. I b S is irritable bows syndrome.

78
00:04:17,520 --> 00:04:19,599
Speaker 1: That's correct. Maybe they would have a little bit of

79
00:04:19,600 --> 00:04:24,479
Speaker 1: that at all. Right, thank you very much. Liz grud

80
00:04:24,480 --> 00:04:28,600
Speaker 1: A Hollow, a specialty format and biotechnology analyst for Bloomberg

81
00:04:28,680 --> 00:04:33,000
Speaker 1: Intelligence of course, Bloomberg Intelligence, providing unique real time researching

82
00:04:33,120 --> 00:04:36,920
Speaker 1: context on a variety of industries, all markets, and business

83
00:04:36,960 --> 00:04:40,839
Speaker 1: factors that affect the business terminal. Customers can access this

84
00:04:41,000 --> 00:04:44,760
Speaker 1: function by just typing B I go on the Bloomberg