Does anyone have any idea the effect of selling the manufacturing plant in NC will have on the stock? My understanding is this plant is costing more than it can earn. Who might buy this place - Covance built that place 4yrs ago? Where are the profits?
Question for people who know this business: what happens to CVD if Huntingdon is forced into receivership/liquidation? Won't that be a huge boon to CVD? Or does CVD become the next target for the animal rights crazies? Any thoughts? The Huntingdon issue is coming to a head, possibly today. Very interesting.
I don't think there is any question that Covance will be the next big target. It is actually the worlds largest preclinical (animal work) contract lab. There is already a campaign against it.
That is why the campaign to save Huntingdon is so important - if they are allowed to be terrorised out of existence the domino effect will certainly start.
The US arm of the anti Huntingdon group are promising to bring the battle to the US. Players like Citibank and BYNY have already given in to the antis - so CVD could be vulnerable to a similar campaign. I hope it doesn't come to that and that HTD and CVD go on competing happily for years to come. Number 1 and number 2 in the preclinical market. There is room for both.
Incidently for anyone not watching the Huntingdon issues, the British Government are now intervening very very strongly on their behalf and being extremely supportive of the company.