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Biotech entrepreneur Vivek Ramaswamy, 38, has emerged as a strong contender for the Republican presidential nomination. Just six months ago, he was relatively unknown among candidates, but his unorthodox approach, tireless campaigning and rapport with front-runner Donald Trump have propelled him to second place in some Republican primary polls.
Ramaswamy’s appeal was evident during a recent debate in Wisconsin, where he faced relentless attacks from his rivals. Portraying his self-made image as a highly successful businessman, he attempts to emulate a younger, less burdened version of Trump. Forbes pegs his net worth at close to a billion dollars, which is a testimony to his entrepreneurial skills.
“I am not a politician. , , I’m an entrepreneur,” he said at this week’s debate. “My parents came to this country 40 years ago with no money. I found billion dollar companies.
But it seems Ramaswamy has a lot in common with Trump, including betting on failed businesses and dumping them, leaving investors behind.
exovent
One of his major financial successes came from his investment in an experimental Alzheimer’s drug, which was purchased from GlaxoSmithKline (GSK) in 2015 for a mere $5 million. Despite GSK executives’ skepticism about the drug’s potential, Ramaswamy’s innovative approach led to the creation of Exovent, a firm that secured $315 million through an IPO, the largest biotech public offering at the time. While the Alzheimer’s drug ultimately failed clinical trials in 2017, Ramaswamy’s holding company, Roivant, was partially shielded from the fallout.
Here Vivek Ramaswamy duped the public in 2015 on his Alzheimer’s drug, which had already failed 4 drug tests before being bought for money.
He rebranded it and took the company public in an IPO. Then he and his family sold $2 billion worth of stock before failing again. pic.twitter.com/JlSDQEpjy9
— FinanceLancelot (@FinanceLancelot) 30 August 2023
However, Ramaswamy’s journey has not been without controversy. Critics point to his lofty claims and relative inexperience in the biopharma field, while supporters emphasize his track record of successfully developing drugs that won FDA approval. His shift from biotech to fund management materialized with the launch of Strive Asset Management, which was backed by prominent Republican financiers Peter Thiel and Howard Lutnick. The company’s goal was to take advantage of the growing backlash against the corporate-driven political and social agenda.
Interestingly, Ramaswamy’s foray into the Republican race has not been without challenges. He faces skepticism from former colleagues who question his commitment to labeling the “corrupt” FDA, given that his assets are tied to the FDA’s regulatory approval.
Sumitovant Biopharma successfully acquired Myovant, a subsidiary of Roivant, in October 2022, marking a significant development in the industry. The acquisition was finalized in March, with Sumitovant agreeing to pay $27 per share for all outstanding Myovant shares.
However, following this transaction, Alpine Partners, an investment management firm that was once a shareholder of Myovant, took legal action. He launched a valuation rights lawsuit aimed at ensuring fair compensation for the stock of shareholders including himself. Alpine Partners issued a subpoena for relevant material relating to Ramaswamy’s testimony and how Myovant was valued during the merger talks. The date of scheduled testimony was fixed as June 30, with an additional grace period of 30 days to comply.
During his presidential run, Ramaswamy recently tried to argue in court that his campaign “should be an excuse to avoid subpoenas in a Bermuda court in proceedings related to one of his many pharmaceutical concerns.”
“As a candidate for President of the United States, I frequently travel across the United States to campaign, give speeches, give media interviews, and meet with voters. As a result, I am often away from home, and when I am home it is often not until late evening after a full campaign day,” he explained.
“without filter”
Amid these debates, Ramaswamy remains steadfast in his quest for the presidency, undeterred by detractors and focused on expressing his unfiltered opinions – a freedom he cherishes after years in corporate America.
“The part about it that has been most rewarding for me is speaking my mind without any filter. That is what I am doing in this campaign. And I wasn’t free to do that in my life in corporate America,” he said when asked about his move to enter politics.
Nevertheless, Ramaswamy’s campaign has attracted attention because of its ambitious but unrealistic promises. Notably, he promised to fire 75% of federal government employees within his first term, reminiscent of his time in the biotech industry, where he faced accusations of overstating his ventures. Was lying.
His recent foray into the political arena has also come with legal controversy, as he and Strive Asset Management face a lawsuit from a former employee alleging wrongful dismissal over a disagreement regarding marketing materials. Strive argues that the termination was due to poor performance.
In a statement to the press, Ramaswamy’s campaign spokeswoman Tricia McLaughlin dismissed the timing of the lawsuits as opportunistic. He drew parallels between Ramaswamy’s management style and his approach to government, and emphasized a commitment to eliminating poor performance.
Information for this story was obtained from the Financial Times and the sources mentioned. The author has no securities or affiliations with the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult with a professional before purchasing a security. author has no license
Source: thedeepdive.ca
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