The idea that r&d is inefficient is not unreasonable. the reality behind valeant's demise is more complex. valeant initially began its strategy of buying cheap, cash flow generating assets. But as time went on, they ran out of low hanging fruit as asset prices rose and deals became harder to find. to generate revenue growth and support their growing debt balance, they resorted to unethical, and illegal, tactics such as raising prices and defrauding insurance companies into reimbursing their products.