Ep 3. Drug Short

In the third episode of the first season of Dirty Money, titled "Drug Short," the focus is on pharmaceutical companies and their unethical practices. The episode delves into the world of short selling, which is essentially a bet against a company's stock when the investor believes that the stock will go down in value.

The episode focuses on one particular company, Valeant Pharmaceuticals, which was accused of price gouging and shady business practices. In the early 2000s, Valeant was a struggling company with lagging sales. However, when a new CEO, Michael Pearson, took over in 2008, things began to change. Pearson implemented a new business strategy that involved acquiring other pharmaceutical companies and hiking up the prices of their drugs.

The strategy worked, and Valeant's stock price skyrocketed. Wall Street investors were enamored with Pearson's approach and were eager to invest in the company. However, not everyone was convinced that Valeant's success was sustainable. In fact, some investors were betting against Valeant's stock because they believed that the company's business practices were unethical and that the inflated prices of its drugs were unsustainable.

One of these investors was a hedge fund manager named Bill Ackman. Ackman bet $1 billion against Valeant's stock, which made him a target for retaliation from Valeant and its supporters. The episode follows Ackman as he tries to expose Valeant's practices and how he became a target of a smear campaign led by Valeant's CEO.

The episode also delves into the wider issue of drug pricing in the United States. Pharmaceutical companies have faced criticism for their pricing practices, with many arguing that the prices of medicines are too high and unaffordable for many Americans. Drug pricing has become a hot-button political issue, and the episode explores the ways in which companies like Valeant take advantage of this system.

Overall, the third episode of Dirty Money offers a sobering look at the world of pharmaceuticals and the impact of Wall Street on the industry. It's an eye-opening episode that raises important questions about the ethics of drug pricing and the role of investors in propping up companies with questionable practices.