It seems like Pyott, in my opinion, is on the
right track to enhance EPS on a short term basis by
The question still remains,
however, what are they doing to increase the topline?
Cutting expenses (frequently an Agn method, in my
opinion), will have to cease at some point.
"technology driven" business, it is difficult for me to
understand how Pyott expects Allergan to react quickly! This
is not Ovaltine....although I wish it
was...<chuckle>. Maybe he needs to redefine the company.
Hopefully, he will.
Also, it's about time Pyott or
someone communicates to AGN employees WHERE the company
is going and how they (employees) fit into the mix.
This downsize/upsize "clutching" that has gone on for
many years is not, in my opionion, doing anything to
enhance morale or increase productivity. In fact, it
might be one of the greater problems.
Ok, I got
that off my chest.
Great interest and now we can determine fit as
still maintain <br>AGN will be sold off in 1999.
Derm can be sold to P&G and folded into
Neutrogenia Product Group. WLA back into the picture is
great post. AGN could use their R&D expertise as
there are no new products with the same people
charge under the previous administration. If they
produced the products the results would be here, but
were never held accountable and we pay the price.
WLA and JJ fight this one out with a
strike. This will shake up this MB. Need to hear
Deuce and Old eye guy on this one.
I assume by your reference to Agouron's cancer
capabilities and programs and WLA's new found interest in
cancer, you are suggesting that Allergan's retinoid
program would be a good fit?
Makes more sense all
the time. Need to spend some time with a sharp pencil
to see if WLA could make the numbers make sense.
Strategically, sounds good.
I'm sure by now if you follow the Pharmaceutical
and Biotechnology industries you have all read about
WLA's acquisition of Agouron. Not bad, only a 26%
premium, WLA gets a $400+ million product that's growing
and making money!, and when the accountants finish
and the carnage ends at Agouron HQ in San Diego it
will be accretive to WLA earnings.
Why is this
interesting to AGN and AGN shareholders. Read the BioWorld
article carefully. Notice, Agouron gives WLA a West Coast
cancer resarch center, two advanced preclinical programs
in ARMD (ophthalmogy baby), and let us not forget
that WLA already has a research relationship with
Allergan in diabetes and Parke Davis' bread and butter has
always been CNS (boy would Botox be a treasure in their
hands). It fits like an old shoe.
If you do the
numbers, even at Allergan's inflated stock price, it could
be accretive within 18 to 24 months as long as
Alphagan and Botox continue to show strong
Thoughts? Maybe others have the same idea. How else to
explain Allergan's price jump (up 2% today) and volume
(3x normal levels and the markets don't close for
another 4 hours.
Allergan has a long history of long-term
employees who think they have contributed to past
successes, when in-fact they have only taken up dollars and
space! Fortunately, Pyott cleaned out many of those
senior hangers-on when he first arrived. But there are
still a few key ones left. More importantly, R&D needs
a major reorganization and housecleaning. Millions
of dollars have been poured down the R&D black hole
for years with no return whatsoever! Much of
Allergan's new product success has come from the outside.
Allergan does possess several interesting technologies but
the key question is whether it has the R&D leadership
and knowhow to rapidly turn technology into products
the marketplace wants. That also requires marketing
leadership -- another area with a questionable past. I would
invest in Allergan if Pyott makes some decisive and
sweeping moves in R&D: Translation -- New Talent!
In your post #293, you asked why I call Pyott
I'm somewhat chagrined to
write this, but, in essence, it's a product of my
strange, silly-assed sense of humor and is in no way
intended to be derogatory to Pyott.
As you probably
know, Ovaltine is a powdered chocolate fortified with
vitamins and minerals. The essential message is "when
sprinkled in your beverage (milk), it will make 'one'
healthy and strong."
My thought was we needed
someone (Pyott) to put some Ovaltine on Allergan so it
can grow healthy and strong!! Nothing more, nothing
less. Only an attempt at some verbal fun.
notice I call him Captain. Should we promote him up the
ranks if he continues to do well?
Have a good
one, the Deuce
Mr. Pyott may not have his full team in there
yet, but he certainly doesn't have the 'do nothing,
stagnant'team that was in there before! Things ARE changing and
for the good--not all talk, but action. Do you think
doesn't has updated plans for 1999 and the future. He
didn't make this far on his foreign accent!
some good news coming, such as a good 4th Qtr,
increased sales for Alphagan (market is still expanding),
additional good news for BOTOX, and maybe several new phase
III studies! I'm not going to give up the
How do you know there are no new products in the
pipeline? How many new products does a niche pharma company
usually have? How many do the competitors have? I think
if AGN was gonna be sold off it would have happened
three years ago. They seem to have a better product mix
today than they have had in years.
This is Pyotte's show as he does not have a
"TEAM." They have yet to hire a CFO who would be the
start of his team. No I think that AGN will be sold off
in 1999 as how else are you going to justify the
price. No new products, same old packaging, only
difference is less people. Headcount reduced as the SG&A is
lowered, now what will be next.
we dont always agree on everything,and this is
one example...replaced management did not have the
stomach or courage to do the things needed at agn...this
fellow and his team have...deuce,i see this as a first
step in a larger strategy for agn...i maybe wrong we
will see...you are certainly right that stopping after
this first step is not to be congradulated,but i see
some other steps he is taking...i also agree with you
that agn appears to be running ahead of itself,but if
top line continues to grow,gross margins continue to
improve and he makes some longterm decision with
derm,lenscare and the medical device biz,then it is not