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Shire plc Message Board

  • Invstpro Invstpro Jan 11, 2000 12:48 AM Flag

    Shire at H&Q

    Heard the presentation at H&Q by Shire's CEO Rolf
    Stahel ( rstahel@uk.shire.com )

    The presentation
    sounded good on the surface, but much of the story was
    really taken from the old RPC story and I think RPC told
    it better.

    Missing from the meeting was
    Shire's new CFO Angus Russel ( arussell@uk.shire.com ).
    Still not sure why Shire's first CFO resigned? Also
    didn't see anyone from the old RPC eatontown team. Very
    disapointing.

    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).

    Of course,
    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.

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    • 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
      well?
      Shire's UK & US share price can be found on the
      company website.

    • Trades on 1/14 were 90% institutional buying. A very good sign.

    • 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.

      EP

    • 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
      Shire.

      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
      value.

      This said, I sympathize with the folks at Eatontown
      that are impacted by any closures, if true.

      • 1 Reply to inthelongrun
      • 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
        shareholder lawsuit.
        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.