2000 employees is payment for WP and Valeant mismanagement

[Anonymous]

WP spent too much and the profits did not make up the difference. Valeant borrowed too much and the acquisitions are not bringing in the cash.

So basically you have two poorly managed companies that now have to cover up that they ran up the credit card so in the short term so they would looked good but now have to pay off the credit card.

It is time to pay the bills. Merge. First payment - cut 2000 employees. Second payment- Sell facilities - Third payment- hopefully sales now are greater than the cost of doing business and the profits are used to pay the third payment. Forth payment- more layoffs

The bills might be paid. The problem is that the competitors are not cutting employees and investing in future products, salesforce, etc. So Valeant could loose market share. So this is the big bet. The competitors will not be able to take market share away from Valeant as it drastically cuts costs to pay off past credit card bills. My bet is that Valeant pays the bills but in the end will be one quarter of the company it is today. Not the biggest pharmaceutical company in the world but a small generic pharmaceutical company.

If they are lucky they become the TEVA pharmaceutical company of New Jersey.

 

[Anonymous]

WP spent too much and the profits did not make up the difference. Valeant borrowed too much and the acquisitions are not bringing in the cash.

So basically you have two poorly managed companies that now have to cover up that they ran up the credit card so in the short term so they would looked good but now have to pay off the credit card.

It is time to pay the bills. Merge. First payment - cut 2000 employees. Second payment- Sell facilities - Third payment- hopefully sales now are greater than the cost of doing business and the profits are used to pay the third payment. Forth payment- more layoffs

The bills might be paid. The problem is that the competitors are not cutting employees and investing in future products, salesforce, etc. So Valeant could loose market share. So this is the big bet. The competitors will not be able to take market share away from Valeant as it drastically cuts costs to pay off past credit card bills. My bet is that Valeant pays the bills but in the end will be one quarter of the company it is today. Not the biggest pharmaceutical company in the world but a small generic pharmaceutical company.

If they are lucky they become the TEVA pharmaceutical company of New Jersey.

Unfortunately I think you are right. I go over the organization set up-merging 3 major business units and running this with @100 HQ employees out of NJ- I just don't see how this can succeed long term.... I want to believe this will "be okay". But our competitors are going to eat us alive----if the new Valeant B+L doesn't first. Who Moved My Cheese?!!!

 

[Anonymous]

The Rochester Democrat and Chronicle is worried that most of the cuts will happen in Rochester. 2000 employees. There are only 1700 employees in Rochester. Even 1000 employees in Rochester would be a greater than 50% reduction the Rochester work force.

 

[Anonymous]

B&L had become a bloated bureaucracy. When I worked there and the pharma force had less than 50 it had already started. When KK and the merry band of idiots came in and implemented their point people and matrix nonsense blah blah, that was the start of the decline. in two years they bloated the entire ship. flemming brought in his people, jerry o brought in his, brent his, perry his, Kk hers. etc etc. 100s and 100s of unnecessary people and those are just the ones you know about. it's a cascade. How many of those people brought in a friend. B&L HQ can operate with 100 people just fine. Do you know how little people in HQ actually work each day. They sit at computers talking to each other looking busy. The efficiency of the average office worker these days is pathetic.

Look at what they did with the sales force. How many reorgs, realigns. Perry and KK are totally clueless. So evident by how they changed courses so many times.

A big chunk of the 2000 is R&D. Understand, valeant doesn't do R&D. They acquire. That's it. They will keep a skeleton crew to pull through the pipeline or sell it off or to acquire others. That's it.