Hmmmm....why New Jersey?
Oh wait, that would be where the CORPORATE offices are. OK, NOW I understand.
Hint Mr. Longfield: If you want to save money, don't move or try to attract people to one of the highest cost of living states in the country. I'm not suggesting Mississippi, but this is just BONEHEADED. You've got to do more for the business than come up with these doofy announcements.
Hint to the analysts: As much as I want to see the stock price go up, PLEASE reward BCR for running their business well, not for semi-annual pronouncements that don't do diddley like failed disease state management, failed manufacturing consolidation, and the soon to be failed corporate consolidation.
This is a bunch of Scooby Dooby doo. And I'd know.
You (gtcs187) are right that NJ is not a bad place to live. I left Bard (Covington, GA) in 11/96 to join a different company in NJ. Like anywhere else, you can find a nice place to live where the family will be happy. I took a careful look around Northern NJ and ended up moving to Morris County.
The cost of NJ was a different story. I sold my GA home for $86k and got a built a nice home for only $242k (a bargain in 1997 dollars). Since then, property values have increase significantly in NJ due to the stock market rise - at least until last year. My property taxes went from $775/year (GA) to $5500/year (NJ). I was lucky, my wife and 5 kids loved it and the NJ company helped by covering closing/legal costs (both buying a new home and selling the old one), giving me 3 points to buy down the interest rate, and a 3 year mortgage differential program, on top of an 18% raise.
I have since left NJ (1999) and moved to Cincinnati to work at a different company. Housing prices are much better than NJ; I bought a new home with 50% more living space and 3 times the yard size for a mortgage payment that is less than my NJ house. The only drawback are the kids who still miss living in NJ.
I am not trashing NJ because I enjoyed living there. I just wanted to provide some hard numbers about relocating to NJ.
Unfortunately it may not even take that long, many of our manufacturing operations could take advantage of the Mexico facilities, since there is plenty of floor space there. As far as buildings are concerned I heard through the grape vine that there are research park type facilities ready for leasing NJ. Taking advantage of these two opportunities could very well shorten the time line of the move to 18 months. Of course bearing in mind that moving a manufacturing facility takes less time than actually getting it efficiently up and running. I'd say they probably have until the end of this quarter, if that, to announce some sort of plan to their people before the exodus begins. You may be correct in your assumption that it still may be a while, unfortunately at this point, it is the uncertainty of the future that drives peoples reactions, and not our expectations based on current discourse.
You ask where are the details. Any company that says they are going to do something and it is going to take three years immediately loses my credibility. Not that the move is easy, but it certainly could be accomplished in shorter time. If I were a Bard employe, I would not pack the moving van until the building is completed in Jersey and that may be a very long time.
Well said. As an ex-Barder myself choosing to move to CA (no snow), I believe what you seeing here (myself included)is a lack of trust of the top management of BCR. They have repeatedly made commitments to there employees and repeatedly broken them. The real issue is that the Board can not decide what their identity is. It is obvious to us in middle management that BCR aquires intellectual property and small companies and commercializes the products at a good profit. The Board should consentrate on what the do well and take the very good R&D talent and let them run with that ball full bore. Instead, their policy has been let's see what story we can sell Wall Street to make the stock go up. BCR needs to take a significant risk define their mission and ride it for the long haul. Re-inventing a company is tough and risky but that's why they make the big bucks.
New Jersey provides biotechnology firms several
advantages few, if any, other states can offer:
New Jersey has greater access to venture capital for the biotechnology industry than any other state in the nation. New Jersey has enacted new changes in its tax laws that allow emerging biotechnology companies to exchange
R&D tax credits and NOL reductions with profitable firms. New Jersey�s EDA has constructed The Technology Centre of New Jersey, a 50-acre high-tech research park
which offers emerging growth biotechnology companies laboratory space at an affordable price. New Jersey research centers and universities devote considerable
resources to the field of pharmaceuticals, medicine, and the biological sciences. These include the Center for Advanced Biotechnology and Medicine and the Center for Molecular Medicine at the University of Medicine and
Dentistry of New Jersey, the Waksman Institute at Rutgers University, and the Center for Biomedical Engineering at the New Jersey Institute of Technology. A highly skilled
workforce is also an outgrowth of New Jersey�s
universities providing a continual supply of quality labor for biotech firms in the state. New Jersey R&D spending accounts for 11% of all government and industry R&D dollars and 25% of all private R&D dollars spent nationally.
Your response says nothing because...
1) I doubt Bard needs access to venture capital.
2) Bard is NOT an "emerging biotechnology industry".
3) Bard does not need taxpayer dollars to subsidize "affordable laboratory space".
4) All of those "research centers and universities" won't require Bard employees to move to New Jersey before they'll talk to them.
5) Just like "the cheapest car to drive is the one you already own", Bards best shot at a "highly skilled workforce" is the experienced employees they already have. I moved to Salt Lake City and saw it as an adventure, but would never move to New Jersey...and I don't think I'm alone in that thought.
6) Bard will not move to NJ and immediately get religion about the importance of R&D. If they're not spending it now, a move to NJ won't make them spend it.
Want to try again?
I don't know who you are, but clearly all that BS you posted doesn't do a damn thing for anyone who wants to maintain their job and their quality of life. Jersey sucks and everyone knows it. I feel very sorry for all you Bard people that are now faced with challenging times ahead. I for one am very grateful for my luck of the draw. I got out of Covington in the nick of time. Now it appears that I have once again escaped the wrath of Bard by leaving Salt Lake just over a year ago.
BTW, Jason Rivkowich, SaluMedica is growing very fast these days. We could use someone with your skills. The only difference is that here you would be required to actually work. Just say the word and your here interviewing.
This good-quality stock looks attractive for the long haul. Bard�s revenue base is reasonably small, meaning that it doesn�t need huge new products to generate meaningful topline gains. In this regard, the company has several products that offer decent growth possibilities. The recently launched Memotherm biliary stent is one, as is the Composix hernia mesh. The rollout of the EndoCinch endoscopic suturing device, for treating gastro-intestinal reflux disease, is also progressing well�chronic heartburn affects over 16 million Americans. Though Bard stock is not timely for the year ahead, we think it is reasonably valued. Indeed, it could double in price over the next 3 to 5 years.
George Rho December 8, 2000
This excerpt was written before the recent announcement. It highlights how Bard�s future growth can be significantly impacted by relatively small sales contributions. Equally, cost and efficiency improvements can have a big impact on the numbers. This consolidation makes a lot of sense, especially if the commitment to R&D is real. A state of the art R&D facility would be great. The big impact from foreign exchange could also be improved by the consolidation of the international operations which are also being looked at for reorganization. This seems like a bold step to sort out the existing diverse operating styles of the numerous divisions and plants where it appears efforts have been unsuccessful to change things slowly. Shaking things up in a radical way is sometimes the only way to deal with changes to culture and policy. This could be exactly what Bard needs.
Those are very good points about the virtues of locating in NJ. It is well known that the center of the pharma industry is NJ. Look at the company -- Merck, Pharmacia, Novartis, Block, Johnson and Johnson, and on, and on. It also will be very enticing from a tax abatement standpoint and low interest state guaranteed loans. Consistent with the NJ U of M and D, and NJIT the new campus will be located in the vicinity of the New Jersey Performing Arts Center. With occasional concerts the staff will be able to enjoy fine arts at lunch.
I've been doing a little thinking of my own. This move really will save BCR money. Isn't reduction in force a cost savings? Will BCR spend the money necessary to move someone who makes 30,000/year to Jersey and adjust that person's salary to maintain the same standard of living? No. My guess is that this person's position will be phased out. Suddenly, the company saves 30,000/year. I predict that this scenario will be repeated many times over throughout Bard. I would be surprised if the various non-manufacturing departments have not turned into resume mills in the last two days.
This move is insane. Some MBA genius thought it would be great to consolidate to an extremely high cost of living area. Your right in thinking that many people won't move and some jobs will be eliminated in the process. However, look at what the initial cost will be to build the facility (160-170 million). The estimated savings are 20-30 million a year (non manufacturing). That's an 6 - 8 year payback - pretty cost effective isn't it? Just like any other company, after the move they will restaff - maybe not with as many people, but the 30-50% higher salaries will more than cover the gap. I'd be surprised if they really save as much money as they claim.
It's also pretty narrow minded to think that the only the most highly talented people are going to be located in New Jersey. Bard is going to lose alot of high quality people with this move.