Let's start with the basics. Ramaswamy has funded his campaign through the
sale of over $32 million in Roivant stock options in February of this year. This could lead one to believe that Roivant, based in Bermuda, is thriving and that Ramaswamy is a great entrepreneur. Except the company
reported staggering losses of $1.2 billion in its financial report of March 2023. This isn't a one-time slump: In March 2022, when Ramaswamy was still Roivant's chairman and a major shareholder, the company
reported an annual loss of $924.1 million.
Ramaswamy's defenders may argue that Roivant performed better during his tenure as CEO in 2021, but alas, the numbers tell a different story. The reality is that Roivant's finances were abysmal under Ramaswamy's watch. During his tenure in
2019, the company's net operating loss exceeded $530 million. By
2020, the losses had doubled to over $1 billion, accompanied by a 65 percent decline in revenue.
These numbers raise a puzzling question: How can a company consistently bleeding billions trade at over $10 a share?
The answer might lie in Ramaswamy's implementation of Roivant's diversity, equity, and inclusion (DEI) initiative,
called Roivant Social Ventures, during his CEO tenure. Launched in 2020
while Ramaswamy was still CEO, this initiative aimed to foster "DEI opportunities for future leaders in biopharma and biotech."
While Ramaswamy vocally opposes ESG principles, Roivant's major institutional investors—including Morgan Stanley, Viking Global, and BlackRock, the very firms he criticizes by name—are among its largest stakeholders, owning over
500 million shares. Ramaswamy himself holds more than 80 million shares, making him an essential partner of these major ESG funds.