2008 - Letter to Shareholders - message still resonates ...In 2008, the world was hit by a financial crisis like never before.
Paladin barely felt it.
Paladin had just completed 5 years of revenue growth equal to 28% CAGR ... from $23.8M (2002) to $82.7M (2008).
Goodman's message to shareholders ... "Survival and growth in challenging times depends on the strategic exploration of untapped markets, under-promoted products and under-utilized resources. For 13 years, this has been the core of our business. Dynamic. Intelligent. Focused. Functioning in the space between large multinationals and small innovators, in this year of global economic upheaval, Paladin's message is one of consistency."
The reason I share this ... is ... one of consistency, between PLB and GUD.
The space is still the same, functioning between large multinationals and small innovators. This time, GUD has their hands deeper in the pockets of a few small innovators and I'm sure there's much more to come.
The untapped markets of LATAM is now the in-focus playground ... where Canada used to be the focus.
The under-promoted is clearly seen in drugs like EXELON and in a smaller, but well known Canadian product ... TRELSTAR (not only for prostate as it was at PLB, but for endometriosis as well this time around).
The under-utilized resources (this time) come from the acquisitions made by Biotoscana and later acquired by GUD. Samira is working to efficently group these resources into one wel-oiled machine. The individual silo mentality has crumbled at Grupo Biotoscana, thanks to Knight and their keen eye on how to gain efficiency. Lots of low hanging fruit here.
the message really hasn't changed, from one company (PLB) to the next (GUD). The challenge is the same and the focus is consistent. The environment (the back-drop) has changed as strategy clearly needed to change for a bigger, better run at success.
If I'm correct, our revenue growth (CAGR) should be able to outperform in a convincing way over the next few years. But, it requires some very unique and exciting deals to be made. We are now well positioned with drugs in the pre-launch spotlight (except for Mexico) and we need more ROW products to be added.
We have the span and the reach that Goodman never had in the past. Therefore, a much better foundation from which to grow an empire. This is how I gauge succes. This is where fact separates from fiction.
Fear mongering about share price drop - taking companies private - CEO's not interested in growth but just using this as a playground ... is for those uneducated in Goodman's approach. Improved response to pharma growth is a much better way to gauge how we're doing and where we're likely to go in the future.
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Rough 5 year comparison ...
GUD (LTM 2021)
Revenue = $1.725 / share
Net income = $0.4735 / share
Also guessing these numbers will be higher once we have the full year under our belt rather than using the last 12 months.
PLB (2001)
Revenue = $1.395 / share
Net Income = $0.11843 / share