Lowered foward guidance reflecting flat or a couple of % points higher EPS over the next year has basically killed any chance for a substantial return on investment (near term). The stock looks cheap on a valuation basis, but where will the eventual resumption of growth come from ? I ask this because many research contractors are doing very well currently while AMRI continues to use the tough economy excuse for the next several qtrs going foward.
Just checking back in with the good folks of this board. I sold ~5 months ago after taking the ride all the way up and down, luckily selling a little bit along the way. I like this company, what it has done, the investments it has made and think it is more forward-thinking than its competitors. Still, I am saddened that it has not yet been able to capitalize on its vast internal capabilities to pull a repeat of the Allegra process story, or some comparable wholly owned invention that can lead to revenues beyond those of a service business alone. I am fully aware of the difficulty of such an achievement; however, this is an organization that prides itself on being the best. Perhaps such an announcement is in the offing...I have no knowledge one way or the other. I only hope so for the benefit of the longs who have patiently waited for the resumption of growth. Best wishes to all...here's to good investing and good living.
Agreed, cheap on valuation, but growth may need a miracle with all of big pharma stuck between a rock & a hard spot (no incentive to research develop new drugs, (patent protection in trouble, pressure to lower prices/reduce sales to Canada to stop reimporting them, subsidizing poorer nations etc., possibility of medicare putting a ceiling on prices...) What companies are you comparing to when you say "many research co's. are doing very well"? Thanks.
Check out Pharmos (PARS); inexpensive but plenty of potential growth. Dexanabinol (accelerated phase III clinical trials for severe traumatic brain injury) and loteprednol etabonate & tobramycin opthalmic suspension (FDA approved for inflamatory ocular conditions) are among many products in their developemental pipeline. This company is being virtually ignored by Wall Street; but that is going to change very quickly once it crosses $5 and holds. Big money margin players will then take over. JMHO, Thom