RE:RE:RE:RE:RE:RE:OHHHH DEAR.... TD JUST CUT TO HOLD FROM BUYOf course it was material and thanks for pointing to the RBC Script report. They increased the sales force, to increase sales on Nilandron, a product that's been called ''too expensive'' for CVS. I don't know how profitable that move will be in the end. What we do know is that ANI Pharmaceuticals launched a generic of Nilandron and it will be less expensive so...Also, yes they could have hired the extra hands to push for Donnatal sales before the DESI hearings but don't forget there's also Allergan's Viberzi coming in for IBS. It doesn't seem to bode well for CXR's North America revenues at all. Don't forget that for FY2015, Donnatal represented 34% of NA revenues and Nilandron 10%. I don't know how they can say that recent developments are immaterial to the business.
CYBERPUNK wrote: CNInvesting wrote: Why couldn't the management be wrong about that decision ? You think it's impossible for them to mess things up...well.
sunshine7 wrote: Interesting that they (he) believes 2Q results will be met but much of the concern is forward, some real, some unknown or imagined. FX due to Brexit is real but no mention of GBP debt hedge. Ongoing strategic review he sees as a negative as well as the future of Donnatal. These things will become knowns in coming months. Does anyone believe that management would double the Donnatal sales force earlier this year if there was a high risk?
Maybe they were increasing Donnatal sales force to extract as much profit as they could before DESI hearing. They recently increased sales force of Nilandron according to RBC Script Report - and we find out last week that a generic was launched by competitor to compete with Nilandron's sole drug status. And PR yesterday on Nilandron stated CVS drop "not material," ... but did not mention the generic introduction that competes with Nilandron's sole status - and that is defintely material in my opinion.