As a pharmacist, I decidedm to look at this stock because of rx sales for Flumadine for the flu. The P/E of 145 was a shock to me. Why so high. Must be something besides th Australian flu. How about some input from anyone that knows. JimG, Rx
FRX do not have the ability to push the new drugs through the approval process at the FDA in a timely fashion. So, one has to be careful and should not be too optimistic about their approval of new drugs at the expected dates. Remember they are venturing into the new arena of innovative drugs from their traditional generic drugs business. So, there will be a long and painful learning process. Nobody knows their new management capabilities and their management culture.
Our investment club has held FRX for a couple of years now...bought it on the high end of the buy range and have had a few scary moments when sales and earnings dropped because of overstocking and inventory adjustments...but FRX is back on the right track it seems...P/E so high it seems to me due to the minus earning during those readjusment times...it should readjust and with the stock split coming...we are holding on to our shares!