Slightly better than expected earnings, new ceo
who promises that it will be at 50 by end of 99,
committment to accountability which is new at Allergan,
salary expense will continue to be reduced through
They want to become a small (for
the pharmaceutical industry), aggressive company that
can react quickly in the marketplace.
It seems/appears this company has been
restructuring for a long time. Can you provide any insight(s)
as to HOW they plan to become smaller and more
aggressive in the marketplace? While their product portfolio
includes more than pharmaceuticals, it is difficult for me
to understand how they will react more quickly in
the pharmaceutical marketplace. Unfortunately, I
understand all too well about restructuring and layoffs.
Thanks for the input.
I agree that the 1992 reorganization eliminated
many of the true entrepeneurs at the company. Shepard
was only there to bleed the company of salary and
stock until he retired, and he surrounded himself with
yes-men. He got away clean, but left the baggage for the
shareholders. Another of many senior executive that populate
american corporations whos only interest is themselves.
Funny how high the stock has gotten since he left. But
his legacy, the staff that protected him still
remains and the only way to infuse life into the company
to to rid it of the cancer. The new CEO should
realize that the people surrounding him have no skill
sets necessary to run a company, only to protect their
interests. If in doubt, look at the insider trading. None of
the senior execs is buying, only selling to get their
piece of the pie. Unless this level goes and some
talent comes in, $60 is the limit.
It seems you have some excellent insights on what
needs to happen/what will happen at AGN. I'd rather not
discuss that in this forum. Believe me, I have a long
history Allergan. Please feel free to email me:
email@example.com...we might know each other. Thx, Bill F.
Who in the world is Bear Steren? Is your post a
hoax or what? To be considerate , I will assume you
are from a foreign country!!!!
A couple of
1) Why will increasing the R&D budget be good for
investors? Are you familiar with the "time" required to
introduce products? Are you familiar with past R&D
2) Specifically, why do you believe the new CEO,
David Pyott, will make a difference. I would like to
know his plans from your perspective.
on what specific information do you expect AGN to
have a return of 15-25% in the next 3-6
I'm not picking on you, but your post is poorly
written and frought with "bulletin board stock"
I welcome your comments.
Glad that the AGN people are joining the Msg
Board. Its been boring and we need to hear from you all.
The new CEO is doing a great job and is on the right
road to success. Notice the stock price. Will the
"lifers" allow him to change the AGN philosophy and the
AGN way. He needs our support as Sales declined in
Fiscal Year 1997 1% prior to his coming on board and the
Day Sales In Inventory climbed from 123 days to 135
days. Sales decline 1% and DSI is up 9%.
not make the Inventory guy a VP yet. Note the Day
Outstanding went from 77 Days in 1996 to 60 Days in
1997--that is the guy who has to be laid off. With less
Sales, the Cost of Sales was up 4% Why. What is the
story on the lens problem?
I hear there may be
problems on the multifocal. Anyhow glad to hear from you
all. Let the CEO remake AGN into Alcon...
Can the new CEO see the forest. So far nothing
has really happened that has changed the way AGN
reacts to the marketplace.
Selling tools are lacking
and the internal areas are controlled by managers who
have been there for years. How can the people
caused the problem, be the same people that will fix the
problem. The "mind set" is not there and its not going to
change. Its easy to say eliminate the work then eliminate
workers its simply not going to happen. Certain methods
tools that the customers need are totally
lacking at AGN. Listen to the field personnel and the ex
field personnel and they can explain what it takes to
get an order processed, shipped and still be short 4
items. Look at the fill rates.
The "fools" are there
and they will remain there as they have the ability
to BS and play "politics." Results are not rewarded,
whether you are liked or not.
MillleniaMan1000 you have a heady
job to do and its going to
take time, but do you have the time.
My advice is not to take these message posts too
seriously. If you think AGN is bad, try looking at Boeing
(BA). It is nothing more than a quasi email system for
Personally, I look at the Yahoo message board for all of the
equities I own and track. Most of it is worthless, but
fun, chat. On occasion, I will find an intelligent
post (like Finanly) that will push me to seek more
information. Does that mean I act on his insights? No! Simply
another source of information to put into the investment
I was with AGN for 27 years and certainly wish the
new CEO well. I have a small position in AGN, but, as
a private investor, will move back into the stock
IF if looks good to me.
Have a good one. Bill
We might know each
You are correct. The restructuring that is taking
place will only be a stop gap method and will only bear
fruit through the
3rd Qtr when the $125M to $150M
restructuring charge will hit. Your are right...then what. The
infrastructure will still be there and the lifers will have
their jobs and nothing will change. Decisions will not
be made as failure will be judged.
The new CEO is
doing the right thing, but he needs to bring in his own
people and change the mentality. To many people with
less than 3 years with Allergan are disheartened and
are now going along for the ride. It will be
interesting who is left after the layoffs. Will the new CEO
put his plan into effect and will it be functional.
At present Allergan does not have ths systems in
place to be a major player. They do not even know who
their customer is and what the customer wants. I am out
$65 if the funds do not unload first. Watch the
volume and your sell signal is correct. I still think
$75 is a reach, but attainable based upon the CEO's
performance. He is doing the right thing, but he has to have a
sharper knife and really cut
as the infrastructure
will defeat him.
The new CEO is a winner and will react to any B&L
B&L still has to merge the Chiron and Storz into
and this is going to take time.
Presently you have 3 of everything than you will have 2 of
everything then 1. This is
an excellent opportunity for
AGN to pull away and gain market
share. This is
what the goal of the new CEO is for 1999, but first he
must get his own operation cleaned up and molded to be
an aggressive fighting machine that is seriously
lacking. Look for signs at the start of 4Q as the lay offs
completed, and now he can adequately
manage AGN without 5 tiers
of management. Hopefully,
he will hold people accountable
as Return on R&D
is so poor as there are simply no new
and only smoke screens of joint ventures. AGN is on a
and hopefully it will continue, but major changes
have to be
made and drastic downsizing will have to
done to force the
issues into the open. Cut
everything by 1/3 would be a start
and needs to be done
as that is what the Investment Community
banking on and causing a surge in the stock price.
I read your post with great interest. I, too, am
I was with Allergan for 27
years. My last position was Sr. V.P., U.S. Sales &
Marketing for eye/skin pharmaceuticals & Botox.
downsized (read "canned") about 4 years ago.
sense is we know each other?
Please feel free to
email me: Bfaulds@aol.com if you'd like to discuss the
Thanks, Bill F.