Valeant’s Wise Name Change to Bausch Health

I was thinking about the news earlier today that Valeant Pharmaceuticals, the Canadian healthcare company that saw its stock price rise from $24 to $263 in the span of four years before cratering to a low of $8 in 2016, will change its corporate name to Bausch Health Cos. in July 2018.

This is clearly a no-brainer good move for the company. Brand names and intellectual property exist to serve you. If people pay a premium because of how they regard your brand, you should hold onto it for dear life (I cringe when I see investors throw away generations of good-will to name a business after themselves or to announce that a new sheriff is in town, as it throws away portions of the pricing power and customer base that had been acquired over time).

Conversely, if your brand has a negative value, and people don’t want to associate Read the rest of this article!