What B+L Purchased

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Anonymous

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B+L bought ISTA for 500 mil. There are 330 employees of this company. There are two eye drop products. This is over 1 million per employee or 250 mil per eye drop product. There are no facilities. The manufacturing is outsourced to B+L already.

B+L now has another office building in California.

Strange aquistion at this stage of the game. Clearly trying to build up a story for an IPO. More products the better the story. However the Debt burden must be incredible at this point. High interest rates due to high risk ventures.

IPO in a year or two? The story is not good enough yet and the debt is too high. If a bank was dumb enough to finance the purchase of ISTA then there will be a bank dumb enough to finance an IPO. However, it is hard to imagine a share price going anywhere in an IPO if the debt burden of the company is as high as it is now.
 






Anonymous said:
B+L bought ISTA for 500 mil. There are 330 employees of this company. There are two eye drop products. This is over 1 million per employee or 250 mil per eye drop product. There are no facilities. The manufacturing is outsourced to B+L already.

B+L now has another office building in California.

Strange aquistion at this stage of the game. Clearly trying to build up a story for an IPO. More products the better the story. However the Debt burden must be incredible at this point. High interest rates due to high risk ventures.

IPO in a year or two? The story is not good enough yet and the debt is too high. If a bank was dumb enough to finance the purchase of ISTA then there will be a bank dumb enough to finance an IPO. However, it is hard to imagine a share price going anywhere in an IPO if the debt burden of the company is as high as it is now.
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Pharma is now in four separate locations in the US. Rochester, Tampa, New Jersey, Irvine. If B+L consolidates the groups into one or two sites it would be an efficient company with reasonable growth potential. Keeping all four sites open with duplicate and triplicate jobs functioning at the different facilities makes no sense.

Since ISTA has been reasonably successful I would keep this site and their management and move New Jersey Pharma and Rochester Pharma to Irvine Ca. Would make for a good IPO then in a year or two.
 






It's doubtful that NJ would close. Many overpaid former Schering courtesy hires occupy this office. Flatten and broaden? try redundancy and overlap. A large amount of dollars has been spent stocking this office along with overpaid dead weight like Phil, Perry and Kissling.
 


















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