Carl Icahn says Forest in crisis, blames Solomon

Quote

Anonymous

Guest
Carl Icahn issues open letter to Forest Labs shareholders:

"I believe Forest Labs is in crisis. Howard Solomon was wrong in the past with his overly optimistic predictions. The company's stock price is down 11% in the past 10 years and more than 50% from its peak. Moreover, it appears to me that Forest was completely unprepared for the Lexapro patent cliff resulting in an estimated 80% decline in earnings for the upcoming fiscal year. I am also concerned, as should you be, that Howard Solomon will be wrong again about his currently optimistic view of the company's pipeline. Forest's new pipeline drugs have missed guidance 8 out of 11 times in the past four years. Therefore, the Board's current strategy is not expected to offset lost revenues from the Lexapro patent cliff and is responsible for the 80% earnings decline in the upcoming year. Additionally, the company is again making promises that we believe they can't keep and they will not be adequately prepared for the Namenda patent cliff that will occur in 2015 which could be devastating for the company."
 






All very valid points


Anonymous said:
Carl Icahn issues open letter to Forest Labs shareholders:

"I believe Forest Labs is in crisis. Howard Solomon was wrong in the past with his overly optimistic predictions. The company's stock price is down 11% in the past 10 years and more than 50% from its peak. Moreover, it appears to me that Forest was completely unprepared for the Lexapro patent cliff resulting in an estimated 80% decline in earnings for the upcoming fiscal year. I am also concerned, as should you be, that Howard Solomon will be wrong again about his currently optimistic view of the company's pipeline. Forest's new pipeline drugs have missed guidance 8 out of 11 times in the past four years. Therefore, the Board's current strategy is not expected to offset lost revenues from the Lexapro patent cliff and is responsible for the 80% earnings decline in the upcoming year. Additionally, the company is again making promises that we believe they can't keep and they will not be adequately prepared for the Namenda patent cliff that will occur in 2015 which could be devastating for the company."
Click to expand...
 






I know HS tried to sound positive in the company portfolio, but it didnt quite come across that way. At least he is aware of the "cliff" we are currently facing and his hope that we can overcome it. Not sure we can based on our current (or future) products
 
























Anonymous said:
HS gone by Thanksgiving. Icahn will get 1-3 board members and will sell the company off for profit. That's his M.O. and Icahn rarely fails to get what he wants.
Click to expand...

Actually Icahn mostly fails. On the BioGen deal at the end of the day he would have done better buying a sector fund. Icahn is no genius. He's just a dried up greedy old "has been". The douche bag will surely burn in hell when he croaks in a few years.
 












Top Bottom
Back
Quote