RE:Let's talk about what CXR managment should/could be doing.select1011 wrote: My concern as a long in this company is how little we have heard from the company since the SP has fallen 70%. The CEO and his team could be doing much more to acknowledge that the SP is a really important measure of how effective they are. Were in the first third of this quarter, and we haven't heard a thing. If they have chosen to report the last quarter in March, then surely they can tell us how this quarter is going along the way until then. So, if they really are fully integrated with AMCO - announce it. If they are keen to buy new products, get it done and announce it. If they will be making another big payment on debt in the current quarter - announce it. My concern is that the CEO and IR will probably take a call anytime from an institutional investor about the failing SP - even though many, probably own fewer shares that the some of us. That's a sign of a management that has never been through a rout like this and I feel that this is either a worrisome sign of naivet, or arrogance. What befell Valeant, was exactly a loss of confidence in the management that was caught flatfooted when investors came calling. No messages to get out, and too late to get them out when they had them. The management at CXR is working in the analogue world, we the markets and investors are working in digital. That's my main concern - confidence in the management of CXR who I don't hear from.
I'm sorry but I think that the company has responded. The CEO just reiterated his guidance, for the third time since Q3 results. Just three days ago he released and posted the company's presentation. He stated that the integration is proceeding well, as AMCo is already a functioning entity. Traditional integration is not required only bridging the gap between the two entities. He stated that outside of time zone issues there are no challenges with the integration. He launched 2 new drugs. Clearly stated that they will be paying down more debt. Guided growth increase in the mid teens. Hired 100 new drug reps in US because of product growth. Stated that their platform now is capable of doing global deals, that no other company is capable of. Opened up India Centre of Excellence with 300+ staff. This enabled him to cancel all outsourcing and provide a cost saving due to labour benefits as well as gaining a highly skilled and educated pool of people.
He added - that because of capital constraints they are not currently in a position to do an AMCo esque transaction but they are working on numerous smaller ones and new ones are now coming out of J.P. Morgan. His trip to SFO this month brought new possibilities with Novartis, Glaxo S.C., Pfizer. Growth by acquisition is alive!
Bringing AMCo's lead products into the US is currently being worked on and offers great potential.
With all that said, what is it that you would like him to do? He stated the the SP is extremely undervalued (and that was @ $45.00+). He can't control the price and he can only lead by example. He did by investing $1M @ around $42.00.