A Wall Street Genius’s Final Investment Playbook
Chapter 175

As soon as Ha Si-heon’s broadcast ended, the headlines of major media outlets were plastered with articles like these.

<Shock: Botox Price Expected to Skyrocket 6x>

<Is a Cosmetic Procedure Crisis Coming…? Botox Procedure Fees Expected to Rise from $300 → $1800>

<Allergan Acquisition War Signals Seismic Shift in Aesthetic Medicine>

Normally, news about such corporate mergers and acquisitions would only occupy a corner of the economy section.

Moreover, this Botox price hike was only a hypothetical scenario expected if the acquisition went through, not an immediate reality.

However, the combination of a deeply integrated product like "Botox" in daily life and the explosive keyword "6x price hike" changed everything.

This news instantly took over the headlines of major media and spread rapidly across social media and online communities.

– 6x increase… $9,000 a year? Guess I’ll have to choose between rent and Botox now.

– So Botox will be for the rich only, and wrinkles will become a symbol of the working class?

– But is it even legal to mark up prices 6x at once?

– Valeant? Never even heard of that company. Where’d they come from?

If it had been your average M&A news, it would’ve only stirred buzz in the stock market—but this was different.

To the tens of millions of people who receive Botox annually, this was like a bombshell directly hitting their skin and wallets.

Riding the wave of heated public interest, broadcasters rushed to air special reports.

[Botox Price Surge Controversy—Is It Even Legal?]

[Laws exist to prevent price gouging, but they're meant for controlling essential goods during emergencies or natural disasters. This increase is about long-term pricing strategy, and since Botox is an elective treatment, it doesn’t fall under those laws.]

[Pharmaceutical prices have always been loosely regulated. Given the massive research costs involved in drug development, the industry sees premium pricing as inevitable. In truth, there's virtually no price ceiling for pharmaceuticals.]

Meanwhile, Maverick Investment’s Allergan acquisition team convened an emergency meeting.

“The media attention has exceeded expectations. And it doesn’t seem to be dying down anytime soon.”

At the PM’s concerned report, Ackman asked coldly.

“What’s the reaction from shareholders?”

“The stock price has only fluctuated slightly.”

“What about the tender offer participation rate?”

Valeant and Ackman’s tender offer deadline was in 30 days.

Now, only 20 days remained.

Within that time, they had to secure 41% of shares to gain a majority stake and take control of Allergan.

The tender offer’s progress was being monitored in real-time.

“Current participation is at 15%.”

Though it was far from the target 41%, considering that shareholders usually make decisions at the last moment, it wasn’t a bad start.

But the problem lay elsewhere.

“To dig up a controversy like that… truly unpredictable, that man.”

They had expected Ha Si-heon to attack Valeant’s business structure.

But to pull the "Botox price hike" card?

“Cunning, as always.”

A chilly smile crept across Ackman’s lips.

Botox, instead of complex financial statements or growth figures.

It was a subject bound to capture public attention while also provoking anger.

Ha Si-heon’s sense for media warfare was undoubtedly outstanding.

“What’s your plan for responding?”

At the PM’s question, everyone turned to Ackman.

His interview was scheduled in two hours.

It was certain that the issue would be brought up during the broadcast.

They needed a clearly defined stance.

Ackman slowly opened his mouth.

“We can’t deny the price increase itself. It’s central to Valeant’s strategy.”

The price hike was a key component of Valeant’s success formula.

It wasn’t just a company policy—it was a business model already publicly declared to investors and shareholders.

If they backed down from this model due to public backlash, it would do more harm than good.

“Should we go with something like ‘too early to say’ or ‘gradual increase’…?”

“That’s useless. Words like that won’t calm public opinion.”

To consumers outraged by price gouging, saying “we’ll talk about it later” or “we’ll raise it slowly” wouldn’t work.

A heavy silence fell.

Then, a few minutes later, Ackman proposed an unexpected approach.

“Summarize the positive effects of the 500% price increase. Focus on revenue growth and improved profitability.”

“Excuse me?”

The PM’s eyes widened.

To him, it sounded less like defusing the controversy and more like justifying the hike.

Wouldn’t that be like pouring oil on the fire of consumer anger?

However—

“The referees of this game aren’t the public.”

With those words, the PM’s expression changed.

He soon nodded in agreement.

“So you’re saying the tender offer takes priority right now, and public opinion is a secondary concern.”

“Exactly.”

For them, the top priority was singular: completing the Allergan acquisition.

Consumer dissatisfaction?

That could be dealt with after everything was over.

Viewed from that perspective, the current situation was actually an opportunity.

Ackman leaned back in his chair with ease.

“He’s confusing a popularity contest with a shareholder vote. A rookie mistake.”

Ha Si-heon had won during the Epicura and Theranos incidents thanks to public support.

And it seemed he was under the illusion that the same strategy would work this time.

But this fight was completely different.

“An activist war is a totally different game, and he hasn’t realized that yet.”

This wasn’t just a public opinion battle.

It was a struggle that would determine the fate of a company.

The only people who had the power to decide—and who needed to be convinced—were the shareholders.

No matter how loudly public sentiment roared, losing the support of real voters was not an option.

Ackman, known as the strongest figure in shareholder activism, understood that better than anyone.

With a smile on his face, Ackman continued.

“We have to thoroughly exploit our opponent’s mistake.”

***

Two hours later, Ackman appeared on the scheduled broadcast.

As expected, the host’s first question was sharp.

“The Botox price controversy is heating up. Valeant is facing harsh criticism as a ‘greedy corporation.’ What do you say to accusations of consumer exploitation?”

Ackman responded with calm and confident poise.

“Ha Si-heon’s ‘500% increase’ statement is nothing more than a scare tactic.”

“So you’re saying the price hike isn’t real?”

“No, the price will go up. But the context behind that increase has been omitted. Botox is currently severely undervalued. We’re simply trying to restore it to its proper worth.”

“Are you saying the original pricing was wrong from the start?”

Ackman nodded.

“Exactly. Allergan has kept Botox prices artificially low in its obsession with market share. In doing so, they’ve devalued their core asset. That’s nothing short of a management failure.”

His gaze turned directly toward the camera.

This time, the message was aimed at the shareholders.

“Just with appropriate price adjustments, we expect annual revenue to increase by 300%, and EBITDA to improve by over 100%. We also anticipate this will immediately lead to a stock price surge of over 20%.”

“But isn’t that ultimately about pursuing profit at the expense of consumers?”

“I don’t see correcting the price of a product that has been subject to irrational discounts as exploitation. I fully understand the consumers’ dissatisfaction, but we must look at it differently. The previous structure was unsustainable and fundamentally abnormal.”

His message was clear.

The price hike was justified, and it would benefit the shareholders.

The market responded immediately.

Allergan’s stock price surged by 12%, and the tender offer participation rate shot up to 22%.

And that wasn’t the end.

“Infinity and Capital Research Group have requested meetings.”

Allergan’s major shareholders had reached out to meet Ackman.

Their interest would likely translate into participation in the tender offer.

If this momentum held for two more weeks, Allergan would undoubtedly fall into his hands.

However, the backlash wasn’t minor either.

A wave of outrage erupted on social media.

– $300 per treatment was undervalued? What kind of nonsense is that?

– Now Botox is like caviar. A luxury item just for the rich?

– Keep dreaming. If you raise prices, we’re out.

– Anyone tried a Botox alternative? Drop your reviews.

– Gotta get in for one last treatment before the prices go up.

As Ackman boldly justified the price increase, consumers’ anger exploded uncontrollably.

Declarations of switching to alternatives poured in, and a last-minute rush to book treatments before the price hike raised fears of a Botox shortage.

“He clearly anticipated this.”

Watching it unfold, Maverick’s PM murmured.

“Now he’ll probably come out and say it himself—that if Valeant’s acquisition succeeds, loyal Botox customers will leave, and the brand will collapse.”

He was certain Ha Si-heon had orchestrated this public uproar from the start to create precisely this situation.

But Ackman remained calm.

“The data?”

“All prepared.”

Because in his hands, he already had the weapon to counter Ha Si-heon’s claims.

Botox was originally a premium product, and its core consumer base consisted of financially comfortable individuals, meaning customer attrition would be limited.

Even if alternatives existed, they planned to highlight brand trust and quality gaps to emphasize customer loyalty.

The key wasn’t public sentiment—it was winning over the shareholders.

And so, Ackman waited for Ha Si-heon’s counterattack, fully armed with meticulously calculated figures and data…

But even as one, then two days passed, Ha Si-heon did not appear.

In fact, since the Botox price surge controversy, he had vanished from the media.

“Is he taking time to formulate a new strategy?”

Ha Si-heon was the manager of a fledgling fund established less than six months ago.

It was possible that Ackman’s unexpected strategy of justifying the price hike had caught him off guard.

But Ackman knew better.

Ha Si-heon wasn’t the kind of opponent to be that clumsy.

On the morning of the third day, an urgent call came from the PM.

[Ha Si-heon just appeared on a broadcast!]

Ackman quickly turned on the TV.

But he didn’t see Ha Si-heon on CNBC.

It was the same for the other major financial channels.

“What channel?”

[It’s… ‘Good Morning America.’]

Ackman’s face hardened instantly.

Good Morning America was the highest-rated morning show in the U.S.

Ha Si-heon had made a deliberate choice.

Not a Wall Street financial channel—but a show watched by the general public.

Ackman’s brow furrowed.

‘This is…’

Ha Si-heon was once again appealing to the masses, not shareholders.

But at this point, it couldn’t just be a simple mistake.

It was a deliberate strategy.

‘What exactly is he planning?’

***

ABC Studios.

As I sat in the studio, the familiar hosts greeted me warmly.

“Sean, long time no see!”

“Not that long, really. We’ve met twice in just six months.”

“You always seem to be at the center of hot issues… and now it’s Botox?”

The show began with its signature upbeat jokes and banter.

In such an atmosphere, earning the trust of shareholders would be difficult.

Still, there was a reason I had chosen to appear here.

Because I needed to make the Botox controversy a nationwide issue.

This show’s high ratings made it the perfect spark for igniting public opinion.

“But regardless of how we feel about the price hike, isn’t it only natural for a company to pursue profit? It’s not a charity, after all.”

The host’s remark almost sounded like she was defending Ackman’s logic.

Probably for the sake of appearing neutral.

I responded calmly.

“It’s true that companies exist to make profit—but there’s a reasonable limit. Valeant has crossed that line. Especially considering the harm it could cause to patients and the impact on public safety, this is an issue we can’t ignore.”

“Public safety? Isn’t that a bit of an exaggeration? Botox isn’t exactly a life-saving drug, is it? It’s not the end of the world if people have a few more wrinkles…”

That was the issue.

Botox was perceived as a cosmetic drug, and therefore carried the image of a luxury item.

And who would sympathize over the price of a luxury good going up?

The expected reaction was obvious.

Then just don’t use it.

In short, the Botox price debate alone wasn’t enough to spark nationwide outrage.

Of course, I never intended to rely on that controversy alone.

‘This isn’t bad for an initial spark.’

Massive wildfires don’t start out large.

They begin with a small ember, and grow as more fuel is added.

Even the tiniest flame, if fed enough oil, can eventually engulf an entire nation.

Besides, the flame I had just lit was by no means small.

Now, I had just one job left.

To keep pouring oil onto that flame, and grow it into something massive.

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