Ackman, founder and CEO of hedge fund Pershing Square Capital Management, made several comments Wednesday in front of the Senate Special Committee on Aging, which was holding a hearing about drug prices, that board members do not typically make.
In a hearing scheduled after the close of the market, he said that the very delayed 10K will prob come out Friday, the CEO will be on board Monday (the date was not previously disclosed), he would recommend price cuts on several drugs to the board, and that he essentially saved the company from bankruptcy.
VEA Vice Chair Nell Minow is quoted in the story in response to his statement that as a passive investor initially he did not examine their pricing strategy.
Nell Minow, the vice chair of ValueEdge Advisors, finds that mea culpa hard to swallow. “Even for a passive investment, due diligence should always include looking at pricing strategy. That’s especially true here since price increases were the primary way to recover the premium for acquisitions and a key component of the business model overall.”