RE:So you think CXR paid too much for their drug rights?The problem is they paid a premium for drugs which had competition coming through the fda pipeline. The information was readily available and is a complete lack of DD when your spending the kind of money they did. This resulted in a huge writedown, reduced cashflow, but the debt is still there and makes it a very burden given the leverage. Analysts have indicated there is more competition coming, but they haven't made a dent in the debt to realise the benefits of their purchase, in fact they added more debt. Go figure.
MirrorWorldMan wrote: I cannot think of a BP in the past that has not paid too much for a drug, or co-licensing agreement, or co-promotion contract, or process & development acquisition, or BioTech company. It's pretty common occurrence, and guess what? All those companies are still around and flourishing after the setback. Pharma companies drop or cancel formal agreements all the time if market realities turn out different than expected. Nothing new here. CXR will be fine.