Valeant Considers A Name Change

Pharmaceutical company Valeant is considering a name change after losing 95% of its value. The company name is obviously preceded by its reputation. A reputation earned through bad business practices. Apparently this strategy has worked before; companies have recovered from scandals using this technique. Valeant is aiming to reduce its $30 Billion in debt.

Chief Executive Officer Joe Papa said that Valeant Pharmaceuticals International Inc. is considering a name change after a two-year stretch that has seen the company lose more than 95 percent of its value amid harsh criticism of its business practices and future prospects.

There’s a long history of corporate name changes after scandals, reputational blows or other negative associations. In 2003, tobacco giant Philip Morris changed its name to Altria Group Inc. after a tobacco litigation settlement. Isis Pharmaceuticals Inc. changed its name to Ionis Pharmaceuticals Inc. in 2015, shedding the association with the violent group in the Middle East. And Security contractor Blackwater Worldwide changed its name to Xe Services after a controversy around a shooting in Iraq that killed civilians.

Will this prove to be an effective strategy?

Reference: Valeant Considers Name Change