I never advise buying before an earnings report, but this one is tempting? On a pure valuation basis Alere has alot going for them. Low P/S .96, P/B 1, PEG .85..... If ALR reports positively as I expect? It has alot of upside!
I don't think there is any risk to disclose if the 9 other deaths have no relation to Alere, and Alere has already issued the public recall notice for the pads. Or did I misunderstand the potential legal risk to Alere due to these dealths?
Also, I'm kind of surprised about the magnitude of this. 11 deaths due to a contaminated factory seems like kind of a big deal. Yet I never saw anything in the news about this. Is this "business as usual" for the FDA?
I've always thought that FDA regulations can cause a false sense of security for the industry. If there were no regulations for safety, then companies would institute their own inspections of their suppliers, and make their own, stronger and more relevant, requirements for their suppliers -- without that, businesses would risk immediate failure were any serious health/safety issues arise. Instead, the industry gets a free scapegoat (the FDA) when things go wrong (e.g. the FDA failed to institute appropriate regulations or inspections).
O.k. here is another one for you. This company purchased Triad pads for a kit they sold. In Early 2011 The FDA closed the Triad pad manuf. in TX. 11 deaths ahve occured. A FDA report states that Alere was approaced by someone who got sick from the pad but did not die. Does this have to be disclosed in SEC filing. Triad sold pads to many companies includeing Bayer. There are two or three suits against 2 of the 11 deaths. Does Alere have to declare the risk that the other 8 might be potential lawsuits for the deaths?
Ideed. Reg FD is exactly it! Nice call ascanio99. I learn something new every day.
Fortunately it looks like Reg FD also allows disclosure of nonpublic information to happen in a variety of ways, not just through SEC 8-k filings. I think Alere has this covered via the conference and the presentation on its website. Here's the relevant Reg I found when googling reg fd:
4. "Public Disclosure" Required by Regulation FD
Rule 101(e) defines the type of "public disclosure" that will satisfy the requirements of Regulation FD. As proposed, Rule 101(e) gave issuers considerable flexibility in determining how to make required public disclosure. The proposal stated that issuers could meet Regulation FD's "public disclosure" requirement by filing a Form 8-K, by distributing a press release through a widely disseminated news or wire service, or by any other non-exclusionary method of disclosure that is reasonably designed to provide broad public access -- such as announcement at a conference of which the public had notice and to which the public was granted access, either by personal attendance, or telephonic or electronic access. This definition was designed to permit issuers to make use of current technologies, such as webcasting of conference calls, that provide broad public access to issuer disclosure events.
Too late to do anything but FYI On Jan. 11th Alere's Chairman spoke at at 30th JP Morgan HealthCare ..said that Alere was certainly affected by Europe in November and December but did not go into detail. We will find out what he ment by that tomorrow. Also they have presentation doc's on their website from the conf... I thought they have to file those with the sec?