Future of Salix

[anonymous]

Salix appears to be in the dead cat bounce phase of it's life-cycle. Let's see what has happened in last year:

Earnings (or less of a loss) are up. Stock has risen 25% before the Amneal lawsuit. The Norwich ruling is a wash since IB-D got remanded back to lower courts.
B&L spin-off is in jeopardy. If it does spin-off they will use the 4.5 billion they receive to give to shareholders instead of reducing their outstanding 21 billion in debt.
Do they have any new drugs in their pipeline?
Salix represents half of BH earning without B&L. I would expect layoffs and downsizing to start happening within the next 18 months.
What has Appio done or said that thinks there is any future.
Institutional investors are invested to get the B&L payout. The stock will shoot-up then there will be a massive sale on the BHC side.
Leadership has no direction. They do not know what they want or where to go. They should be aggressive buying smaller companies to diversify their portfolio, but they have done nothing except increase the boards' stipend, increase executive compensation.
They don't care about retaining talent.

Retaining talent? Like field sales? They hate us. They don’t even want to retain the company. This was classic Valeant.
- Buy a company.
- Gut the leadership and operating budget.
- Sell off assets.
- Raise prices on retained products by hundreds of a percent year over year.
- Pick the bones of the carcass and line executive pockets until there is nothing left but a pile of bones.
- Take credit for the “turnaround of a lifetime”
- Move on to the next host.

 

[anonymous]

Retaining talent? Like field sales? They hate us. They don’t even want to retain the company. This was classic Valeant.
- Buy a company.
- Gut the leadership and operating budget.
- Sell off assets.
- Raise prices on retained products by hundreds of a percent year over year.
- Pick the bones of the carcass and line executive pockets until there is nothing left but a pile of bones.
- Take credit for the “turnaround of a lifetime”
- Move on to the next host.

This is OLD news - they haven't bought anything in forever (although they need to) The only ones spending $$ is BLCO, and they are spending our $$. Im not really sure how they worked out that sweatheart of a deal. We get stuck with the debt, they get invest our $$.