RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Cohodes Short SummaryThanks Marcel. Something to add to the calendar (if the Company is around then).
I've started looking through the CMA's website and found this little timbit. A fine imposed on GSK for $45M for a period over 2001 to 2004. GSK made $90M in sales in 2001 alone. Its clear that altough CMS CAN impose the maximum of 10% of sales, it doesn't mean it does. GSK still made more money even considering the fine.
I'm gona keep looking see if anything else interesting comes up.
Marcel7 wrote: Yes. The decision is expected in August. https://www.gov.uk/cma-cases/investigation-into-the-supply-of-pharmaceutical-products
visionaryfool wrote: CookieMonster, thank you for posting useful information. Although long, I ALWAYS like to hear both sides of the story.
From the article, its clear that the maxium fine would be 10% of the total sales of a year.
The CMA may impose a financial penalty on any business found to have infringed the Chapter II prohibition or Article 102 (or both) of up to 10% of its annual worldwide group turnover. This would up the fine from my original estimate of $60 to $70 million to say $110 million to $120 million. This is the MAXIMUM fine that can be imposed. MAXIMUM. Period. They have $175M in cash on hand at the moment. I would argue that the Cinven payment of $200 million due in October has a clause that thou shall not be paid if regulatory fines are imposed so there is some comfort that the payment can be paid without a problem.
Next, future cash flows. There was nothing where it says the CMS has the authority to ROLL BACK prices. Even at status quo (and lets assume declining sales), the Company would still be a cash cow.
Another interesting timbit in the article:
The CMA’s findings on dominance and abuse are provisional and no conclusion can be drawn at this stage that there has, in fact, been any breach of competition law. We will carefully consider any representations from Pfizer and Flynn Pharma before deciding whether the law has been infringed. This finding came out in August of 2015. It is now June of 2016. Is there an update to this?
CookieMonster wrote: https://www.gov.uk/government/news/cma-issues-statement-of-objections-to-pfizer-and-flynn-pharma-in-anti-epilepsy-drug-investigation