{"id":75,"date":"2017-08-29T11:39:15","date_gmt":"2017-08-29T11:39:15","guid":{"rendered":"http:\/\/127.0.0.1\/wordpress25\/if-canada-was-efficient-i-wouldnt-exist-the-miraculous-success-of-jonathan-ross-goodman.html"},"modified":"2017-08-29T11:39:15","modified_gmt":"2017-08-29T11:39:15","slug":"if-canada-was-efficient-i-wouldnt-exist-the-miraculous-success-of-jonathan-ross-goodman","status":"publish","type":"post","link":"https:\/\/www.moneymethods.net\/?p=75","title":{"rendered":"\u2018If Canada was efficient, I wouldn’t exist:\u2019 The miraculous success of Jonathan Ross Goodman"},"content":{"rendered":"

After suffering extensive brain damage in a cycling accident, Jonathan Ross Goodman didn\u2019t give up. He sold one drug company for almost $3 billion and tripled the value of his next. <\/span>Christinne Muschi\/Bloomberg<\/span><\/span> <\/figcaption><\/p>\n
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<\/p>\n

July 31, 2017
2:53 PM EDT<\/p>\n

Last Updated<\/span>
July 31, 2017
2:57 PM EDT<\/p>\n

Filed under Facebook Twitter Email More Share this story\u2018If Canada was efficient, I wouldn’t exist:\u2019 The miraculous success of Jonathan Ross GoodmanTumblrPinterestGoogle PlusLinkedInReddit <\/p>\n

How good is Jonathan Ross Goodman at profiting from the pharmaceutical market\u2019s inefficiencies?<\/p>\n

Even as he continues to suffer the effects of extensive brain damage from a near-fatal bicycling accident in 2011, his latest company, Knight Therapeutics Inc., has almost tripled in three years, for a market value of $1.35 billion.<\/p>\n

Investors have good reason to have faith in the 49-year-old chief executive officer. In 2014, less than three years after the cycling accident left him debilitated for many months, Goodman sold his former company, Paladin Labs, to Endo Health for US$2.95 billion. The sale, coupled with his family\u2019s ownership of closely held generic drug maker Pharmascience Inc., vaulted him and three siblings into the ranks of the world\u2019s billionaires, according to the Bloomberg Billionaires Index.<\/p>\n

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I realized I didn’t have to be that smart to make money<\/p>\n<\/blockquote>\n

\u201cDuring that time my cognition was improving and I realized I didn\u2019t have to be that smart to make money and I could still do it,\u201d Goodman said in a phone interview last month. Though the sector has since cooled, dropping his net worth below US$1 billion as the valuations of generic drugmakers like Pharmascience have eased, Goodman sees potential for Knight to be another Paladin. Perhaps literally: its business model is the same and Goodman even made a standing offer to Endo to buy Paladin back. Endo told him the division isn\u2019t for sale, he said. Endo declined to comment.<\/p>\n

Too Small<\/h3>\n

Goodman makes money by acquiring marketing rights to specialty drugs in countries deemed too small to be worth the trouble for multinational drug makers. That\u2019s basically every nation outside of the U.S., Europe, Japan and China, he says. Canada, for instance, accounts for 2 per cent of the global pharma market, according to government statistics. To gain access, drug makers have to win approval from review agency Health Canada, then get pricing approval from another board and negotiate with each provincial government to determine what each will pay for the drugs. Even for a rubber stamp approval of a drug cleared by the U.S. Food & Drug Administration, reformatting the paperwork to Health Canada\u2019s requirements costs upward of $500,000 and takes about six months. Companies then face about two more years to wend through the layers of bureaucracy.<\/p>\n

\u201cIf Canada was efficient, I wouldn\u2019t exist,\u201d Goodman said.<\/p>\n

In 2016, Knight generated US$4.4 million in sales, mostly from selling Movantik, an AstraZeneca treatment for opioid-caused constipation, and Impavido, a Paladin-developed treatment for leishmaniasis, a parasitic affliction that causes sores on skin and internal organs.<\/p>\n

\u201cGiven that most of the company\u2019s products remain at a pre-commercial stage, investors should not read too much into the quarterly results at this time and focus on the firm\u2019s outlook for 2017 and beyond,\u201d wrote Laurentian Bank Securities analyst Joseph Walewicz in a March research note. Walewicz sees revenue rising to $6.9 million this year and $52.3 million in 2018 as more drugs work their way through approvals in Canada and other markets such as Israel, Russia, South Africa and the Caribbean.<\/p>\n

Pipeline<\/h3>\n

Knight has another 14 prescription, over-the-counter and diagnostic products in its pipeline, according to a June presentation to investors. The company also has invested in nine life science venture capital funds to gain preferred access to new drug rights. As a result, treatments for issues around diabetes and HPV-associated cancer have been added to Knight\u2019s pipeline, according to the presentation.<\/p>\n

\u201cIf your time horizon is your grandchildren, you\u2019ll do very well with Knight,\u201d says Goodman.<\/p>\n

Goodman grew up in a pharma household. His father, Morris, founded Pharmascience, a Montreal drugmaker now owned by family investment company Joddes, according to a 2016 disclosure in a U.S. patent lawsuit. Joddes is evenly split by Goodman and his three siblings, including David, CEO of Pharmascience, sisters Shawna and Deborah. Paladin was the division of Pharmascience that Jonathan took public in 1995 as a 26-year-old fresh out of graduate school at McGill University in Montreal.<\/p>\n

Bike Crash<\/h3>\n

Goodman\u2019s life took a dramatic turn while on a bike ride in August 2011 with some company managers through the Laurentian Mountains north of Montreal. At one point, Goodman circled back to bring an energy bar to a rider struggling up a summit. After reaching the peak, Goodman was going downhill alone when, for a reason no one knows, he fell off his bike and landed on his helmet. A five-week coma followed. Doctors told his wife he had a 90 per cent chance of dying. He suffered septic shock, a pulmonary embolism, two heart attacks and partial paralysis. When he finally awoke, he told doctors he was a 32-year-old Muslim woman.<\/p>\n

Recuperating took a year and three hospitals, where Goodman learned to walk, talk and eat again. His wife and three kids were his reason to push on. \u201cI would have given up. The task was so daunting,\u201d the executive said, his voice calm and somber. The purpose of his interview with , he explained, was to inspire others facing similar adversity.<\/p>\n

\u201cI\u2019ll never recover,\u201d he said. \u201cRecovery is not the proper term for someone who suffered traumatic brain injury, because my brain will never be what it was.\u201d<\/p>\n

Goodman still has trouble swallowing dry foods and he uses his iPhone for constant notes to supplement his poor short-term memory. For sports, there\u2019s ping pong. No more cycling (despite his email signature that jokes about replying while riding). A concussion would kill him.<\/p>\n

One More Thing<\/h3>\n

When he was well enough to return to Paladin, he decided the time had come to sell the company. Endo, then a New Jersey-based drugmaker, wanted Paladin as a necessary component to reincorporate outside the U.S. as a tax inversion to sidestep U.S. corporate tax rates, says Goodman. Rajiv De Silva, then Endo\u2019s CEO, offered a package worth $142 a share, a 9,300-per cent return on Paladin shares over their lifetime. Goodman accepted.<\/p>\n

Though still suffering the after-effects of the accident, Goodman hadn\u2019t lost his negotiating savvy. As he walked out the door of De Silva\u2019s office, he turned and asked for one more thing, and then another and another. In quick succession he got Endo to agree to let him form Knight as a spin-off to Paladin shareholders and toss in $1 million cash. He also retained the rights to Impavido and a priority review voucher the drug earned from the FDA as a reward for developing rare-disease drugs. Knight later sold the voucher to Gilead Sciences Inc. for $125 million and funded investments into life science funds that are feeding its product pipeline today. De Silva, who was replaced as Endo International Plc CEO in September, didn\u2019t respond to a request for comment.<\/p>\n

\u201cMy mother used to tell me if you don\u2019t ask, you don\u2019t get,\u201d Goodman said.<\/p>\n

He\u2019s still asking.<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

After suffering extensive brain damage in a cycling accident, Jonathan Ross Goodman didn\u2019t give up. He sold one drug company for almost $3 billion and tripled the value of his next. Christinne Muschi\/Bloomberg July 31, 20172:53 PM EDT Last UpdatedJuly 31, 20172:57 PM EDT Filed under Facebook Twitter Email More Share this story\u2018If Canada was efficient, I wouldn’t exist:\u2019 The miraculous success of Jonathan Ross GoodmanTumblrPinterestGoogle PlusLinkedInReddit How good is Jonathan Ross Goodman at profiting from the pharmaceutical market\u2019s inefficiencies? Even as he continues to suffer the effects of extensive brain damage from a near-fatal bicycling accident in 2011, his <\/p>\n","protected":false},"author":1,"featured_media":61,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-75","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","has_thumb"],"_links":{"self":[{"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/posts\/75","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=75"}],"version-history":[{"count":0,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/posts\/75\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=\/wp\/v2\/media\/61"}],"wp:attachment":[{"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=75"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=75"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moneymethods.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=75"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}