Valeant Pharmaceuticals (Crisis)

Valeant's 2015 crisis from drug price gouging and distribution fraud demonstrates how financial engineering in pharma creates fragile structures. The company acquired drugs and raised prices 500%+ while hiding a secret mail-order pharmacy. When exposed, market cap fell from $90 billion to $9 billion. Like a predator whose hunting grounds are suddenly fenced off, Valeant couldn't access its revenue when its practices were revealed.