https://en.wikipedia.org/wiki/Vivek_Ramaswamy
Roivant Sciences and subsidiaries
Ramaswamy in 2017
In 2014, Ramaswamy founded the biotechnology firm Roivant Sciences; the "Roi" in the company's name refers to return on investment.[36] The company was incorporated in Bermuda, a tax haven, and received almost $100 million in start-up capital from QVT and other investors,[36] including RA Capital Management, Visium Asset Management, and the hedge fund managers D. E. Shaw & Co. and Falcon Edge Capital.[33] Roivant's strategy was to purchase patents from larger pharmaceutical companies for drugs that had not yet been successfully developed, and then bring them to the market.[36] The company created numerous subsidiaries,[37][40] including Dermavant (focused on dermatology), Urovant (focused on urological disease), and China-based Sinovant and Cytovant, focused on the Asian market.[37][41]
In 2015, Ramaswamy raised $360 million for the Roivant subsidiary Axovant Sciences in an attempt to market intepirdine as a drug for Alzheimer's disease.[35][42] In December 2014,[43] Axovant purchased the patent for intepirdine from GlaxoSmithKline (where the drug had failed four previous clinical trials) for $5 million, a small sum in the industry.[36] Ramaswamy appeared on the cover of Forbes in 2015, and said his company would "be the highest return on investment endeavor ever taken up in the pharmaceutical industry."[36][42] Before new clinical trials began, he engineered an initial public offering (IPO) in Axovant.[36] Axovant became a "Wall Street darling" and raised $315 million in its IPO.[43] The company's market value initially soared to almost $3 billion, although at the time it only had eight employees, including Ramaswamy's brother and mother.[36] Ramaswamy took a massive payout after selling a portion of his shares in Roivant to Viking Global Investors.[36] He claimed more than $37 million in capital gains in 2015.[36] Ramaswamy said his company would be the "Berkshire Hathaway of drug development"[6] and touted the drug as a "tremendous" opportunity that "could help millions" of patients, prompting some criticism that he was overpromising.[36]
In September 2017, the company announced that intepirdine had failed in its large clinical trial.[36][44] The company's value plunged; it lost 75% in one day and continued to decline afterward.[36] Shareholders who lost money included various institutional investors, such as the California State Teachers' Retirement System pension fund.[36] Ramaswamy was insulated from much of Axovant's losses because he held his stake through Roivant.[36][43] The company abandoned intepirdine. In 2018, Ramaswamy said he had no regrets about how the company handled the drug;[43] in subsequent years, he said he regretted the outcome but was annoyed by criticism of the company.[36] Axovant attempted to reinvent itself as a gene therapy company,[45] but dissolved in 2023.[36]
In 2017, Roivant partnered with the private equity arm of the Chinese state-owned CITIC Group to form Sinovant.[46][47][48] In 2017, Ramaswamy struck a deal with Masayoshi Son in which SoftBank invested $1.1 billion in Roivant.[36] In 2019, Roivant sold its stake in five subsidiaries (or "vants"), including Enzyvant, to Sumitomo Dainippon Pharma;[36][49] Ramaswamy made $175 million in capital gains from the sale.[36] The deal also gave Sumitomo Dainippon a 10% stake in Roivant.[49][50]
While campaigning for the presidency, Ramaswamy called himself a "scientist" and said, "I developed a number of medicines."[36] His undergraduate degree is in biology, but he was never a scientist; his role in the biotechnology industry was that of a financier and entrepreneur.[36]
In January 2021, Ramaswamy stepped down as CEO of Roivant Sciences and assumed the role of executive chairman.[49][50] In 2021, after he resigned as CEO, Roivant was listed on the Nasdaq via a reverse merger with Montes Archimedes Acquisition Corp, a special purpose acquisition vehicle.[51] In February 2023, Ramaswamy stepped down as chair of Roivant to focus on his presidential campaign.[36][52]
Ramaswamy remains the sixth-largest shareholder of Roivant,[36] retaining a 7.17% stake.[7] Roivant has never been profitable.[51]