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Thanks for the offer. I have four for
1. How has the torpedoed ALZA takeover affected his
R&D strategy and plans for its future prototype -
does he plan to incrementally modify the prototype
that his predecessor had in place in the
Pharmaceutical Division? (I liked the Barron's article and his
emphasis on compounds that will evolve into drugs with a
$300M-$500M revenue stream - avoiding the corresponding risks
in pursuing "blockbusters".)
2. Can he please
direct the CFO Coughlin to start reporting business
segment return on capital? In the crazy market we are now
in where nothing "fundamental" seems to be of
temporal value, this may not necessarily generate a
negative response - in fact, it would probably be seen as
a favorable gesture in contrast to the
condescending posture of his predecessor.
3) Can he
specifically address his return on capital philosophy as it
relates to his deployment/investment strategy in his
Shareholder Letter - again, hopefully without the topical &
condescending tone of his predecessor?
4) Is it possible
for ABT to formally switch to EVA without seriously
disrupting the current deployment strategy and/or management
reporting system - which might have to be formally revamped
to accomodate its parameters.
Best to Longs...
1) Does ABT still keep 2 sets of books in each
division, with fake numbers being passed from the plants to
the divisions, then from the divisions to
2) Does ABT still hold back inventory at the end of
each quarter in order to manipulate sales? Oh wait,
that was when health care reform was a threat,
2) Does ABT still have a 85% turnover rate in their
finance department? After all, those poor analysts have
to come up with numbers for each update before the
current period is over. Crunch crunch crunch! After all,
gotta be the first to put out that earnings report,
never mind the slave labor and fake numbers!
ABT still have an abysmally low rate of women in
senior management? Oh yeah, once they put a woman as a
direct report to a division president in order to look
good for the glass ceiling report. She had no direct
reports and a fake title.
4) Is Abbott still a
hierarchical, white male run, good ole boy, sleep with your
secretary and make her your wife type of
I can answer questions 3 and 4.
has women in senior management. Mary Szela is the VP
of the perio-operative anesthesia division. Her
climb to the top is proceeding as fast as Miles' climb.
Whatever Mary touches seems to turn to gold. She was the
product manager for Sevoflurane just a few years back,
and now she's just 2 or 3 steps away from CEO. Mary
is extremely intelligent and productive, 2 qualities
that can get you far fast. Then there's Joy Admundson.
I'm not quite sure where she is now, but Joy's name
was mentioned as a candidate for CEO when Duane
4) Abbott is not run exclusively by white males.
Rick Gonzales, an hispanic, is president of HPD, and
Eric Thomas (black), is director of marketing for
Abbott's new sedation drug. I don't know who the've
married or slept with, but they're hardly 'good ole
boys'from what I can tell. Neither am I prepared, without
evidence, to call Mary or Joy sluts, and both are extremely
attractive.(At least Mary is.)
All of these people
seem quite capable of doing their jobs well, but it
doesn't have anything to do with their gender,ethnicity,
or physical attributes. I have no evidence to claim
affirmative action gave these people a boost up the ladder.
And if you asked them, I doubt they'd admit it even
if they believed it. What would that say about the
relative merits of the people they passed along the way?
I'm hoping Abbott management has learned it's not
worth worshipping at the alter of political
correctness. A lot good that did them with the FDA! The recent
television ad campaign with its slogan, "Support America's
Pharmaceutical Companies", demonstrates how industry paticipants
(including Abbott),desperate to ward off national
healthcare, are turning against the giant they helped to
create and which they believed was their friend. It
remains to be seen whether that giant has any sympathy
for its master. Frankenstein didn't.
Why does the employees
(current) ONLY are being reimbursed for as much as 50 % on
Product purchases, while investors should also be able to
buy the products (OTC) at the same price.
someone bring this up in the shareholders
People are buying for sister-in-law's baby, friends
Grandma and getting the reimbursement, where will the
company make the money to pay shareholders for their
Good luck to other investors.
I don't know the answer to book cooking or number
crunching, but I can tell you that the sales forces have
more diversity than they deserve. For years, older
white good ol' boys have been run off as soon as
possible, and replaced with less experienced, cheaper, and
dumber diverse candidates. As an Abbott stockholder;
they are definitely saving money on the payroll and
future retirement payments.