This is for those who say Ackman has made money ...
BA acquisition average price was $ 126. Without the deal AGN will come to around $ 140 (median analysts opinion). For Ackman to make money, he will have to take profit i.e. sell. When 10 % stock comes in the market OR is likely to come to market, AGN drops further although temporarily. If BA sells, I doubt he can make more than 10 per share out of which comes the legal fees, solicitation costs, proxy materials, opportunity costs etc etc. Of what remains, 15 % has to be given to VRX.
Sounds like if AGN beats these guys (I believe AGN will), there will be significant cuts. As DP stated, his "only" concern is AGN shareholders. He has said time and time again that RD is extremely important to AGN growth so, one would assume no cuts there. Then where? Sales? Mid mgt? Where will these cuts be????
This is for those who say Ackman has made money ...
BA acquisition average price was $ 126. Without the deal AGN will come to around $ 140 (median analysts opinion). For Ackman to make money, he will have to take profit i.e. sell. When 10 % stock comes in the market OR is likely to come to market, AGN drops further although temporarily. If BA sells, I doubt he can make more than 10 per share out of which comes the legal fees, solicitation costs, proxy materials, opportunity costs etc etc. Of what remains, 15 % has to be given to VRX.
Sounds like if AGN beats these guys (I believe AGN will), there will be significant cuts. As DP stated, his "only" concern is AGN shareholders. He has said time and time again that RD is extremely important to AGN growth so, one would assume no cuts there. Then where? Sales? Mid mgt? Where will these cuts be????
Unfortunately for this purpose (fortunately for us) stock won't drop that much and will likely takeoff after it resets. He will hang on and pat himself on the back unfortunately. Right now he's capped in VRX. There has got to be a tipping point where he would not want this deal. Not sure what that would be.
Analysts have a one year price target, I believe of 179 on us now. We would drop too far below $155 in my opinion...and my opinion shouldn't count for much. Lol
With Levadex being shelved again they could cut Neuro despite the growth with Botox. NR was hired because of Levadex basically and with that not happening anytime soon I wonder if they consolidate Neuro Sales or look to cut back the NPS or RBM teams. We have a lot of dual roles in Neuro that don't need to be there. I hate to say it but the only thing that makes sense is one sales team that sells all indications to all accounts ie private practice and hospital and one support team that does both reimbursement and practice management. Maybe 150 - 160 sales reps nationally and a reimbursement/practice management support team of 60 or so people. Those would be good numbers and keep Neuro lean with enough support for our customers.
The whole two sales forces for two indications for the same product and same customers was as ill-conceived of an idea as I ever heard of in my time in pharma.
Dont be surprised if he says no to the deal once VRX reaches 100 and AGN stays around 150 after both announce their 2Q
here's the clip of the interview
http://video.cnbc.com/gallery/?video=3000290937
Pyott is way more polished than Pearson.
