Posted on 07/23/2023 1:21:42 PM PDT by JayGalt
Ramaswamy's Bermuda-based company, Axovant Sciences, had been formed only eight months earlier, but here it was raising $360 million to develop an Alzheimer's drug that had been all but abandoned by giant pharma GlaxoSmithKline.
On the first day of trading the stock almost doubled, giving Axovant a market capitalization of nearly $3 billion. Considering that Ramaswamy had persuaded Glaxo to part with the unproven remedy for a mere $5 million up front, the newlyweds were ecstatic, as was a veritable wedding party of hedge fund pals who had followed Ramaswamy into the stock.
Yet as quickly as it started, the honeymoon was over. Why would Glaxo sell off a promising drug for so little? critics asked. And how could a company with ten employees, two of whom were Ramaswamy's mother and brother, be worth so much? Experts, analysts and the collective blogosphere quickly piled on, and Axovant's shares went into free fall. By early September they were trading 12% below the IPO price.
Using a pharmaceutical holding company he formed last year, Roivant Sciences, Ramaswamy hopes to spin out dozens of companies, much as he did with Axovant. "This will be the highest return on investment endeavor ever taken up in the pharmaceutical industry," he boasts. "It will be a pipeline every bit as deep and diverse as the most promising pharma company in the world but with a capital efficiency that is unprecedented."
(Excerpt) Read more at forbes.com ...
I stand corrected.......he was born here....... of foreign born parents.
+1
He wasn't "born." He *hatched*.
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