In America, we often hear of the plight of young girls in far off parts of the world who by virtue of being born female, are at a disadvantage. It is hard for many, born and raised in a Western minded civilization to even conceive of that kind of inequity and yet it exists. In many countries women are treated as property, objects and worse, servants whose sole purpose is to cater to the whims and needs of men. Many women are never taught to read or calculate basic mathematical formulas and in far too many cases, many are sold off by their own parents for marriage and a life of servitude. What is shocking, is when these things occur in what Westerners define as enlightened countries. Media paints the image of women under Taliban or ISIS rule, and most are sickened by these stories, however, few speak of the horror girls go through in places like rural India. India is a massive country, and it is far more than the financial epicenters of Delhi or Mumbai. Much of the state is poor and tribal in nature where the lives of women are not their own, and opportunities for girls to become educated are few if they exist at all. There are many who are working towards a change, to bring the opportunities of the big cities to girls and women all over the country, and it is with the help they receive from Americans like Nikesh Patel that enables them to not just succeed but thrive. One such effort is called The Ohm Shri Shivsankalp Seva Trust, which is a unit of the All-India Movement for Seva (AIM for Seva). AIM is an award-winning agency that seeks to bring opportunity to all children across India bridging the gaps between those in and near the cities who have means, and the millions who do not have the same opportunities. The Indian government is already a country that understands the need of empowering girls and young women. In fact, about a decade ago they set aside January 24th as ‘National Girls Day’ to raise awareness and keep it up so that programs and educational opportunities for girls can sprout up across the vast nation. It was shortly after National Girls Day was founded that Swamini Omkaranand, created Shivsankalp Seva Trust. His vision was to do just what the government was trying to do, with the inspiration of strong female leaders like Indira Gandhi, to empower young women to become leaders and alter the patriarchal society that existed in much of the country. The reason behind selecting the 24th of January as ‘National Girl Child Day’ was specifically Indira Gandhi. That was the day she was elected as the first woman Prime Minister of India and the day was set aside to create awareness on a few topics like rights that girls have which are the same as boys, the importance of education, proper nutrition, and of course health. Historically, when a daughter was born into a rural family, they were pushed into child marriage, or they were promised to a family for future marriage in exchange for a dowery. Since the independence of the country, the Government of India had been trying against discrimination between girls and boys, against the atrocities faced by the girls as they reach puberty. In order to improve the condition of girls, the Indian government has taken several steps over the years such as Save the Girl Child, Beti Bachao Beti Padhao, free or subsidized education for the girl children, reservations for women in colleges and universities. It was under these laws that Swamini Omkaranand partnered with AIM to develop his sanctuary for girls and while it is through the help of the Indian government that the Trust exists, it cannot run day-to-day without the help of generous people across the world who share in the belief that all girls and young women have the right to live free as their male counterparts do. Nikesh Patel is one of those generous men who has been instrumental in supporting the Trust so they do not just operate, but grow and reach a wider swath of the country bringing hope to areas where hope is a precious commodity. Born and raised in America, the businessman has spearheaded the support for organizations like AIM and Swamini Omkaranand’s Seva Trust. Paying it forward is what is taught by the Trust, and one of the reasons Nik Patel chose this as one of his philanthropic goals. It is also an example of one of the Seva Trust’s success stories is Simranjeet Kaur of Khanpur Village, Ludhiana, an alumnus of Swamini Omkaranand who after graduating, became the first girl in her home village to develop an initiative to educate girls in her community and spread knowledge about the practice of safe menstrual hygiene practices and the availability of sanitary products along with an emphasis on the necessity of a balanced diet. Talking about her efforts, Simranjeet said that in India, one of the most serious health concerns for women is menstruation hygiene. “According to a National Family Health Survey (NFHS) conducted in 2015-16 Only 121 million of the country’s 336 million menstruating women use sanitary napkins”, she says while adding that menstrual hygiene management in rural regions is a major challenge due to lack of information as well as social taboos around menstruation. It is not just hygiene that is focused on. The Seva Trust instills a sense of empowerment in girls who are blossoming into young women. From mental health to physical health to education and a sense of pride in who they are. Simranjeet is only one example of how giving girls the confidence, attention, and benefits afforded to all boys can pay off. The goal is to one day see these women leading companies in the power centers of Delhi and Mumbai while helping lift the impoverished living in the slums up so that India can truly be an economic force and global power with values that appeal to most civilized Western societies.As a fiduciary with the purpose of creating returns, an investment firm must be comfortable with taking calculated risks. In the world of pharmaceuticals, where profits hinge on not only regulatory approvals but also flawless execution of product rollouts, the risks are significant–but the rewards associated with the benefit of changing lives through pharmaceuticals are outstanding. With its recent sizable buy of Valeant Pharmaceuticals Inc. (VRX), Parsimony Limited has demonstrated a textbook example of a well-thought out pharmaceutical play.  Valeant Pharmaceuticals produces a number of highly impactful drugs, but is perhaps most notable for their distribution of Bausch + Lomb vision care products. The brand, which Valeant acquired in 2013, holds a significant market share in this enormous category. However, as it pertains to being a desirable investment, their holdings and products are actually less notable than their strategy. Rather than sinking millions of dollars into risky research to develop new products, they have implemented a contrarian strategy of minimizing development costs and acquiring companies with proven, safe, and profitable products.   

A Paradigm Shift in Pharma Success

Although Valeant has absorbed some criticism for this approach, the results cannot be denied. Whereas many other pharmaceutical companies lean on the perception of research and proprietary medications as a growth driver, very few actually turn a profit. The astronomical research and development costs, not to mention marketing, go-to-market-strategy, packaging, and various other overhead considerations, eat away at margins almost as quickly as science can progress. Conversely, by approaching pharmaceutical products as assets to be managed in a portfolio, Valeant has rewarded investors with a five-fold return to date.  This strategy has taken Valeant from an also-ran in the world of pharmaceuticals to a $90 billion company–with no signs of slowing down. On the heels of its acquisition of Bausch + Lomb, in July of 2015, Valeant surpassed RBC to become the most valuable company on the Toronto Stock Exchange. This innovative approach and single-minded focus on maximizing return has attracted the attention of Parsimony Limited. In October and November of this year, Parsimony Limited brokered large buys of VRX on their clients’ behalf.  

Bold strategy, Bright Future

In addition to the mammoth acquisition of Bausch + Lomb, Valeant has also acquired Synergetics USA, one of the most notable makers of eye surgery products. Perhaps most notably, Valeant has proven their ability to manage floundering and/or risky assets through their acquisition of Biovail in 2010. Given the track record of success that Valeant has shown with outside acquisitions, the sentiment is that they will continue on a predictable growth course and successively make larger acquisitions. In spite of the inherent risk of pharmaceuticals, where one misstep can derail a company’s prospects and profits, Valeant has demonstrated that they are primed to be a future worldwide leader in the pharma space. It is for all the aforementioned reasons that Parsimony Limited and their affiliate, Global Custodian Solutions, was strongly compelled to take on a large position and brokered this trade on behalf of their members–and moreover, as are many other highly regarded investors, are eager to learn of the next acquisition that Valeant plans to make.   

About Parsimony Limited

Parsimony Limited is an investment advisory and brokerage firm, acting as principal on its clients’ transactions, operating out of the Channel Islands. Known worldwide for our expertise in direct client advisement and portfolio management, our specialty is seeking out high-potential assets, while tempering this approach with sound strategy, and executing trades on our clients behalf . Parsimony Limited works closely with their affiliate Global Custodian Solutions, a worldwide leader in bespoke investment strategies that maximize returns for the most knowledgeable and discerning of investors.