Heard the presentation at H&Q by Shire's CEO Rolf
Stahel ( firstname.lastname@example.org )
sounded good on the surface, but much of the story was
really taken from the old RPC story and I think RPC told
Missing from the meeting was
Shire's new CFO Angus Russel ( email@example.com ).
Still not sure why Shire's first CFO resigned? Also
didn't see anyone from the old RPC eatontown team. Very
These things concern me. I remember when RPC was also a
one man show, i.e., Dr V who was first trusted and
then lost credibilty with the street (that led to RPC
stock falling from mid $40 to $10). The turn around in
RPC stock in the past two to three years was
remarkable and goes to the credit of the Spitz team. From
first hand observation, I can tell you RPC team knew
what they were doing and how to deal with the street
(it was very refreshing).
I too am beginning
to wonder about the integration process. When the
merger deal was first announced, I said Shire was under
paying for all they would get from RPC. HOWEVER, without
the RPC people that made Roberts work, maybe Shire
actually over paid. My concern is that without talented
people the company's story will weaken, performance will
slip, RPC sales people will leave for a 'new boss' who
can pay more, etc, etc.
Some of my associates
say they have problems trusting Shire's management,
but maybe that's just a reaction to the style of a
British Company led by a Swiss born CEO -- (with its now
majority US share base, maybe Shire needs to Americanize
itself a bit and with all due respect to KY, that maybe
in the heartland of America but it ain't the
heartland of the financial community).
with the crash and burn approach to eatontown, Shire
will benefit in the the short term with cost savings
(make you woder if they are already concerned about
making their numbers). This is clearly a case where
longer term players need to keep a close eye and stay in
close contact with this cookie.
Monday 1/17 (MLK, Jr. Birthday) but Shire will
continue to trade on the London Stock Exchange as SHP. It
closed Friday on the LSE at 747p(pence?) unchanged.
I'm sure most of you share my surprise & delight how
SHPGY is performing o this side of the Atlantic. If
Shire is "in play" as some of you have infered then
wouldn't it performing as positively in London as
Shire's UK & US share price can be found on the
It's pretty hard to recruit talented
professionals for sales and marketing positions when your
compensation structures are far below that of the big name
pharma companies and management can have the tendency to
go off the deep end. That said, yes I am a share
holder and, yes, I do have confidence in their
portfolio. I'd say that Bill and Victor could retire at this
stage with no worries.
My hope is that they do.
You'd better take a closer look at current
management. Rolf might want to do so as well. Bill, Victor
and the gang in KY need to be cut loose. Without good
sales and marketing leadership, SHPGY won't live up to
your $40-$45 expectations. The sales forces are in
disarray, and Senior Management is not getting all the
facts. Keep the faith.
I bought RPC about 2 years ago @ $13 and am
fairly happy with the return on my investment. The price
of RPC did, however, fluctuate dramatically over
this period of time, and some people that bought in on
the highs made little money from the "wise" decision
by RPC management to sell out to
RPC/SHPGY is a small holding for me so I'm not too worried
about where it ends up, but to be frank, I wasn't all
that impressed with the way RPC management worked on
improving shareholder value. What did you find so great
about RPC management?
I don't know much about
Shire and its management team, but am willing to give
the new owner a couple of years to boost shareholder
This said, I sympathize with the folks at Eatontown
that are impacted by any closures, if true.
I wish to add my 2 bits commenting about Mr.
Spitznagel. I became a RPC shareholder in 1995 and enhanced
my position as time & funds permitted. My reason for
enthusiasm was the promise of their own budding pipeline.
However this was the period where RPC's founder Vucovich
was at the helm as both Chairman & CEO. I believe the
job became too big for him especially as his field
was pharmacology. The Vuke & his cronies delivered
promises to the Street they simply could not deliver. Revs
& earnings fell, RPC lost tremendous credibility
with the Street & subsequently was recipient of a
At this point an disgraced Vuke
elevated a newly hired V.P. of Sales (Spitz) to the title
of CEO. Now as an veteran businessman the MBA Spitz
went to work. He axed unnecessary heads. He reduced
margins. He re-vamped the sales force from inexperienced
kids hired by Vuke to knowledgable & experience pharm
salespeople. He began to bleed out poorly selling co.
products. Spitz & his new team (not the old Vuke, Loy etc.
old team) essentially turned RPC around. The
quarterly losses became growing quarterly gains. And the
Spitz team began to surpass quarterly earnings
estimates (surprise earnings). The Spitz team began to
restore the the credibility of RPC with the Street that
the Vuke & his butt kissers lost. Fund managers began
to take increasing positions and the co. began to
receive more favorable coverage via the bus. media. The
prevailing opinion of those working (under him) in Eatontown
was that Spitz was one helluva CEO and were as fully
devoted to him and his goals for RPC.
From all I've
learned RPC's "sell-out" to Shire was due to pressure
from the Vuke & his cronies. Spitz & his gang were not
truly ready to "cash out". They had much higher
aspirations for RPC. They had some exciting & fruitful
acquisitions in sight however the Vuke & his board cronies put
the "kabosh" on it. Spitz & his gang were delivering
the promise & potential RPC shareholders long
awaited. I see this scenario similiar to that of former
Denver Bronco quarterback (& future Hall of Famer) John
Elway hanging up his cleats prior to achieving the 2
back to back Super Bowl victories. VERY UNTIMELY! I
don't know where Spitz is headed in his profession
future but if he finds himself at the helm of another
suffering (publically traded) co. lodibob is gonna invest
in that it.
Like yourself I am unfamiliar with
Shire mgt. however I've learned its CEO, Stahl, is very
aggressive in respect to maintaining shareholder value.
Shire has a big ,promising pipeline especially with RPC
products. If managed effectively we will all do well.