re: David Amsellem, analyst at Piper Jaffray on Valeant Comments from an interview of David Amsellem on BNN by Andy Bell...
---on new CFO...lengthy honeymoon for new mgmt., but there is a lot of fixing to do because of the utter mess left by Mike Pearson.
---mgmt have identified about $8B of transaction value/$730M of EBITDA whether that amount is true or overly opportunistic, I'm (David Amsellem) not going there, but if the co. were to execute on these theoretical transactions it doesn't make a big dent on the leverage ratios.
---existing assets that are left are quite problematic & the idea that a handfull of divestitures is going to change the narrative that is the wrong way to think of VRX. The problems are not as simple as well... there are some assets we need to get rid of...we pay down some debt & everything is going to be wonderful...it's not quite that simple.
---problems are myriad (like regulatory). What business model! It is a roll-up of desperate & dodgy assets.
---for ex. some products (isopril) are off patent & there will be generic competition at some point & that means a lot of EBITDA potentially at risk here.
---stabilizing other businesses like gastenterology, dermatolology & getting them to growth is another problem spot.
PS...I mentioned the problem if the sell Bausch & Lomb to their cash flow/EBIDTA in an earlier post but not mentioned by David Amsellem in the interview, but the co. did not identify this asset for selling. The smartest thing they have said so far.
carlos