Old API Wind-down Ltd - Ordinary Shares ARLZQ

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Seeking alpha

[kuatolives]

One of the reasons AZ probably got it off the books was that maximum penetration had likely been achieved, so there was little point spending millions flying reps around the country promoting something that was already selling about as much as it was ever going to sell. Would be like trying to sell Coke at McDonalds, and this is the lifecycle of the drug business. ARLZ will ride the revenue stream down to 50 or 60M a year, then punt it off to yet another speciality pharma who will then ride it down further when the returned revenue is no longer worth the effort of a large market cap (then no longer worth it for a medium cap, then to be punted down to a small cap pharma).

I agree with Adams on this one, don't bother spending money on something that is relatively stable and already has about as much penetration as you're going to get. Better off flying those reps around the country pushing Yosprala then trying to sell Coke to McDonalds. 

Oh, and one more thing about the deal. Financing for low revenue generating companies is always more expensive than for high ones. This deal also allows ARLZ's EBIDTA to rise to a level that will shave off more % points on their loans when they head to the credit markets. The benefit of this 80M a year in revenue will be immediately felt when they finance... anything.