RE:RE:RE:RE:NOLsLG2264 wrote: Snoot I hope your correct but I don't see Valeant selling on the cheap.
I certainly do not have any insider knowledge on this matter. I'm a shareholder of Knight Pharmaceuticals and my statement is based on Jonathan Goodman's opinion that assets will be available for cheap later this year or early next year. He made this statement in his Q4 conference call a few months back. Here is a transcript of what he said below:
Operator
Your next question comes from the line of David Novak from Comark Securities. Please go ahead.
David Novak
Hey, good morning, and congrats on the year. Just a couple from me. Jonathan, in light of current events unfolding in the world of pharmaceuticals, there’s definitely some well known distressed sellers out there. Would you classify the current environment as to be Armageddon that you’ve been forecasting so frequently over the last two years?
Jonathan Ross Goodman
Well, we’re not – again, I think it’s going to take another six months to a year before companies realize their situation. Right now they’d still fall for maculate. It has to be digested. And so that’s certainly – we expect things to pick up really towards the end of the year or first quarter next year.
David Novak
Great, great, thank you. And kind of on the same sort of line of thought, I’d say that investor perception has changed recently, I mean, typically investors, they’re starting to look less favorably on pharma companies that just “buy EBITDA” and use a ton of debt to do it regardless of purchase multiple. Now obviously Knight will never take that, you have a lending an investment strategy in place. But on the product front how would you explain to investors that you are differentiated from other spec pharmas that just buy EBITDA.
Jonathan Ross Goodman
Well, because we don’t – well firstly I would love to buy EBITDA. I just want to pay a fair price for it. I’m not ready – I’m developing Knight for my grandchildren. So I know I’m not building up for the next quarter or the next year. So I’m not ready to overpay for an asset just to make numbers. And certainly not ready to take on debt to finance that.
We think there will be products for sale. There will be EBITDA to acquire. But it’s going to be later on the year, first quarter of next year as things kind of unwind. I’m certainly hoping for that and will be purchase that a fraction of the price that people are paying for assets – for what people pay for assets last year.