Posted on 09/08/2023 9:01:26 PM PDT by Reno89519
Vivek Ramaswamy, the fast-talking, Ivy League-educated, telegenic political phenom thrills Republican voters, infuriates his presidential primary opponents and styles himself as an entrepreneurial “scientist” with a glittering business background and hundreds of millions of dollars to dump into his out-of-nowhere campaign for the White House.
But a review of Ramaswamy’s career – marked by the hyping of a failed Alzheimer's drug, giant payouts when other investors got burned, lawsuits alleging pressure to break securities laws and more – reveals a businessperson whose true liquid net worth is unknown and whose track record as a successful entrepreneur shows limited value creation for anyone other than himself.
To his fiercest detractors – and there are many – Ramaswamy is little more than a hyper-intelligent salesman, capable of using his lightning-quick brain to lure people into buying whatever he happens to be selling at the time.
The product could be an allegedly promising treatment for a brutal, mysterious disease or the notion that he is the next-generation Donald Trump, with an even more pointed approach to populist, grievance-based politics.
So far, that approach has him sitting in third place in the GOP primaries, though he remains far behind Trump and has around half the support of Florida Governor Ron DeSantis.
Still, Ramaswamy is outpacing much more well-known candidates, including former Vice President Mike Pence, former South Carolina Governor and UN Ambassador Nikki Haley and former New Jersey Governor Chris Christie. His critics say that standing is based on little but his formidable rhetorical skills.
“The truth is he goes for flamboyance and finding greater fools to buy into his illusions,” says the well-respected Yale Professor Jeffrey Sonnenfeld, who along with colleague Steven Tian has done extensive research into Ramaswamy’s career.
Sonnenfeld, who is the founder of the Yale Leadership Institute, and Tian have looked at Ramaswamy's biotech and hedge fund records and have repeatedly brought new information to light in Fortune magazine columns.
“[Ramaswamy] always hops out at the top and leaves his investors behind as an enterprise collapses,” Sonnenfeld tells The Messenger. "Now he is trying to make a new business by being ‘Mr. Anti-Woke.’ And he never lets the truth get in the way.”
By far the most prominent effort – and biggest failure – in Ramaswamy’s business career came when his biotech company, Axovant Sciences, acquired rights to a potential drug to fight Alzheimer's disease.
Axovant was a brand-new company. And beyond an undergraduate degree in biology, Ramaswamy had no experience in pharmaceutical research or any further scientific training. The drug was called Intepirdine, and the $34.6 billion pharmaceutical company GlaxoSmithKline, having given up on the drug's prospects, sold it to Axovant for $5 million and other considerations.
Ramaswamy rang the opening bell at the New York Stock Exchange in June of 2015 – alongside his new bride – when Axovant became the biggest-ever biotech IPO at the time, raising $315 million and eventually winning a valuation of $3 billion.
Intepirdine had been promoted by Ramaswamy to Axovant investors as a potential game-changer for a debilitating disease that has defied any type of cure and often made life heart-breaking for tens of millions of the elderly and their families around the world.
It failed miserably.
The drug showed little benefit in clinical trials and the Federal Drug Administration declined to approve it. Axovant shares collapsed, plummeting by 70 percent in 2017 following the clinical trial failure.
Ramaswamy told Forbes magazine that it was the “single greatest failure” of his career.
As he has allowed on the campaign trail, Ramaswamy's fortunes took a hit as Axovant sank to penny-stock status. But he wasn't burned as badly as many other investors.
Ramaswamy’s holding company, Roivant Sciences (the ROI is short for “return on investment”), raised $500 million during the Axovant frenzy.
And by the time Axovant crashed, Ramaswamy had reduced Roivant’s stake in the startup from 75 percent to 28 percent, according to research by Sonnenfeld and Tian at Yale.
Axovant made Ramaswamy a very rich man for the first time, despite the company having just a handful of employees, two of whom were his mother and brother, at the time of its IPO.
Ramaswamy’s 2015 tax return shows a capital gain of $37 million, the first of two major windfalls in his career that have thus far provided the money for his upstart presidential campaign.
Tricia McLaughlin, a spokesperson for the Ramaswamy campaign, says that "like 99.7 percent of all drugs tested for Alzheimer’s disease, it failed."
She adds that "Roivant and Vivek could have sold shares in Axovant before the failure, but they did not. Many would call that an honorable decision."
McLaughlin also maintains that "Vivek and other shareholders were effectively forced to sell a tiny portion of their shares in Roivant (not Axovant) in 2015 to facilitate an outside investor entering Roivant in 2015."
Nonetheless, the sale netted enough money to afford Ramaswamy the ability to self-fund at least some of his campaign. Of course, relying on his own cash could change as Ramaswamy solicits money.
Ramaswamy has so far raised $1.6 million from small-dollar donors, a relatively small number but higher than some other more established candidates. And the effort has just begun.
According to figures in the Tampa Bay Times, Ramaswamy's campaign had around $9 million in the bank near the end of August following a loan of $15 million from the candidate himself.
Roivant Riches
While Axiovant failed, most of Ramaswamy’s stake remained in Roivant, a venture funded in part by QVT, his former hedge fund employer. QVT now calls itself a "family office" rather than a hedge fund and owns the largest stake in Roivant, as well as holdings in a Chinese healthcare company and a rare-earth company that is about 7.7 percent Chinese-owned.
Ramaswamy has staked out a China policy significantly different -- and less aggressive -- than some of his GOP opponents. In a testy interview with John Roberts of Fox News last week, Ramaswamy defended his stance that he would only fully back Taiwan against a Chinese invasion until the U.S. is no longer dependent on Taiwanese semiconductors. After that, he said, he would resume a policy of “strategic ambiguity," which means no longer making any explicit guarantee that the U.S. would defend Taiwan against Chinese aggression.
In 2015, Ramaswamy boasted that Roivant would be “the highest return on investment endeavor ever taken up in the pharmaceutical industry.”
It did not exactly turn out that way.
Roivant did, however, lead to the second giant payout that padded Ramaswamy’s wealth. In 2019, Roviant sold its stake in five spinoff companies to Japanese conglomerate Sumitomo. Ramaswamy’s 2020 tax return shows a capital gain of $176 million, accounting for much of his current liquid net worth. The deal itself was valued at $1 billion.
Roivant went public through a Special Purpose Acquisition Vehicle (SPAC) transaction in 2021. That route comes with strict rules on when and how much Ramaswamy can sell of his 7 percent holding in the publicly traded company, which has been valued at between $100 million-$500 million depending on its volatile stock price. In February of this year, Ramaswamy sold 4 million shares in the company netting him an additional $24 million.
Roivant, like many of Ramaswamy's ventures, has never turned anything close to a profit, losing around $2 billion between 2020 and 2022, with another billion-dollar loss expected for 2023.
It's not unusual for startups, particularly in the biotechnology space, to lose money for years before possibly hitting it big. But that also means the company is reliant on attracting more and more wealthy investors, posing a potential business risk for Ramaswamy as he runs for president: his populist trashing of the ruling class might not be the best way to lure deep-pocketed investors.
McLaughlin points to "successful therapies developed by Roivant and its subsidiaries through phase 3 clinical studies include Rethymic (a life-saving therapy in kids), Myfembree (endometriosis), Orgovyx (prostate cancer), Gemtesa (overactive bladder), and Vtama (psoriasis)."
Sonnenfeld notes that these drugs won FDA approval under other companies. "It is akin to saying Elon Musk added nothing to the success of Tesla because John DeLorean’s failed car had the same vertical doors and body," he says.
Other Controversies
Ramaswamy has come under heavy attack for accepting a Paul & Daisy Soros Fellowship for New Americans to help cover the cost of his Yale Law School education following graduation from Harvard.
Ramaswamy, the son of Indian Hindu immigrant parents, has said on the campaign trail that he would support at least a temporary ban on "birthright citizenship," the constitutionally enshrined right to citizenship of those born on American soil to immigrant parents.
It has been reported that Ramaswamy paid to have the reference to the Fellowship for New Americans removed from his Wikipedia page. The late Paul Soros was the older brother of George Soros, the billionaire philanthropist and supporter of progressive causes whose name alone enrages much of the GOP base.
There are also multiple lawsuits involving Ramaswamy and his various companies. A case in federal court alleges that Moderna, developer of one of the first COVID-19 vaccines, infringed on patents owned by Roivant. Moderna has countered that it was able to do that because of an order issued under former President Trump during his Operation Warp Speed.
In his book, "Woke, Inc," Ramaswamy writes positively of notorious "pharma bro" Martin Shkreli, who went to prison for securities fraud and whose business model included acquiring the patents to drugs and then jacking up the price by enormous amounts. Shkreli was released from federal prison last May.
“What was Martin Shkreli really guilty of?,” Ramaswamy asks in the book. “Why did the DOJ go after him so hard, when it lets others quietly get away with much worse?" Ramaswamy was also at times critical of Shkreli in the book and in subsequent interviews.
Ramaswamy and his asset-management firm Strive, which seeks to push back against so-called "woke" investing that takes into account a company's governance structure as well as its record on environmental and social justice issues, is also under legal threat.
The firm, which just surpassed $1 billion in total assets spread across multiple Exchange Traded Funds (ETFs), is facing a suit from an employee who claims she was pressured to violate securities laws. The employee, Joyce Rosely of New Jersey, contends that Ramaswamy directed her to "violate applicable securities laws and participate in the decision to terminate [Rosely] when she refused to participate."
McLaughlin of the Ramaswamy campaign dismisses the suits as "total and complete nonsense from an aggrieved under-performer who was fired."
He’s a hellava better swindler than Chris Christie.
May your favorite anti-Trump poser rot in h3ll.
I’d say he’s done at least as well in business as Chris Christie, Ron the Sanctimonious, Nimrod-duh Haley, Asahole Hutchinson, and the rest in the businesses they’ve started and built to a market cap of $10 billion, or maybe just a bit better...
He cashed in while most of his investors came out losers. He overpromised but underdelivered.
He’s a CON MAN. He’s got a good number of gullible people fooled.
Yes, and I am surprised at the number of Freepers included in that.
He had a $37 Million Capital Gain, which means somebody else had a $37 Million Capital Loss. Sounds like zero sum in the big picture. And the perfect way to start a career in politics.
No, he’s a fraud, top to bottom...
He’s a con man, nothing more.
This needs to be disseminated as widely as possible.
He is like that Elizabeth Holmes now in prison who said she had a miracle blood testing device. He bailed out of his stock schemes and made a lot of money.
https://en.wikipedia.org/wiki/Vivek_Ramaswamy
Plus he is a WEF graduate.
His company’s numbers raise a puzzling question:
It consistently bled billions but publicly traded at over $10 a share?
Newsweek ^ | 09/01/2023 | Sam Nunberg
Posted on 9/2/2023, 11:10:34 AM by Responsibility2nd
~snip~
Let’s start with the basics. Ramaswamy has funded his campaign through the sale of over $32 million in Roivant stock options in February of this year. This could lead one to believe that Roivant, based in Bermuda, is thriving and that Ramaswamy is a great entrepreneur. Except the company reported staggering losses of $1.2 billion in its financial report of March 2023. This isn’t a one-time slump: In March 2022, when Ramaswamy was still Roivant’s chairman and a major shareholder, the company reported an annual loss of $924.1 million.
~snip~
The reality is that Roivant’s finances were abysmal under Ramaswamy’s watch. During his tenure in 2019, the company’s net operating loss exceeded $530 million. By 2020, the losses had doubled to over $1 billion, accompanied by a 65 percent decline in revenue.
These numbers raise a puzzling question: How can a company consistently bleeding billions trade at over $10 a share?
~snip~
While Ramaswamy vocally opposes ESG principles, Roivant’s major institutional investors—including Morgan Stanley, Viking Global, and BlackRock, the very firms he criticizes by name—are among its largest stakeholders, owning over 500 million shares. Ramaswamy himself holds more than 80 million shares, making him an essential partner of these major ESG funds.
In a deeply ironic twist, Ramaswamy’s anti-”woke” campaign is being bankrolled by the profits reaped from the very policies he denounces.
~snip~
(Excerpt) Read more at newsweek.com ...
NEWSWEEK——ironically, Ramaswamy’s anti-”woke” campaign is being bankrolled by profits reaped from the very policies he denounces.....ESG.
While Ramaswamy vocally opposes ESG principles, Roivant’s major institutional investors—including Morgan Stanley, Viking Global, and BlackRock, the very firms he criticizes by name—are among its largest stakeholders, owning over 500 million shares.
Ramaswamy himself holds more than 80 million shares, making him an essential partner of these major ESG proponents.
These numbers raise a puzzling question:
How can a company consistently bleeding billions be publicly traded at over $10 a share?
He is. What else would a Soros Fellow be. Big pharma too… yes America needs him. He and trump could be on the Big Pharma Pays ticket together.
Obtaining obscene money from taxpayers is a business.
By Mike McIntire
April 5, 2016
For Donald J. Trump, it is a long-held legal strategy, if not a point of pride, to avoid knuckling under to plaintiffs in court.
“I don’t settle lawsuits — very rare — because once you settle lawsuits, everybody sues you,” he said recently.
But Mr. Trump made an exception when buyers of units in Trump SoHo, a 46-story luxury condominium-hotel in Lower Manhattan, asserted that they had been defrauded by inflated claims made by Mr. Trump, his children and others of brisk sales in the struggling project. He and his co-defendants settled the case in November 2011, agreeing to refund 90 percent of $3.16 million in deposits, while admitting no wrongdoing.
The backdrop to that unusual denouement was a gathering legal storm that threatened to cast a harsh light on how he did business.
Tearing down candidates is pretty easy.
Personally, I don’t trust Rumpswab, he’s got that smarmy smirk like he’s better than anyone else and he’s sucking up to Trump, (hence “rump”swab). I hope Trump doesn’t fall for this guy’s sucking up, seems Trump just loves anyone who loves him no matter how bad they are as a politician, he’s proven that in the past, not sure he’s learned his lesson, but I’ll vote for him over any democrat on the planet.
Vivek is a biz whiz when he has Soros money behind him, without it he is hot air.
Elizabeth Holmes is a good comparison to Vivek.
Vivek was a big winner while those that trusted what he was saying lost.
Vivek is amazing. He’s the 2024 version of Trump, right down to the business failures, more liberal past, and saying all the right things. It’s sad to see DeSantis supporters tear him down because Ron turned out to be a crappy campaigner. Of course, the more establishment types want Ron too. Anybody but Trump. (And now Vivek since he’s going just as hardcore as Trump.)
It’s also said to see racial remarks regarding him.
Sounds like Ramaswamy knows how to use the Bidenomics system.
Interesting, I don’t see, and I probably need to reread, but I don’t see any racist comments. Complaining about his anchor baby status is not racist, complaining about his religion is not racist, etc.
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