CPHD has been a good ride and I've made good money, but I have growing doubts for my last block of shares. As share price is down about 49% in a few short weeks, I sure hope Management is not planning on any extra compensation or bonuses. Need to demonstrate pay for real performance.
I just listened to yesterdays call and will dig into the data after next week's call. But I continue to be disturbed by all the emphasis on gross margins and revenue growth as the targets for performance, rather than net earnings per share and profitability. Nowhere in yesterday's call did I hear the words "profit", "profitability" or "net earnings". CPHD has been at this business for years now and is still losing significant money each and every quarter. Bringing new products to market without demonstrating that you can make net earnings on them is not sufficient for a company this old. I hope the CEO will address profitability next week.
Time for this company to set guidance and performance measures on net earnings, or sell out and get rid of administrative costs, including the recent doubling of a sales force; and sales mgmt. group growing from 4 to 10. Will also look at how much cash CPHD has that can sustain losing $0.32/share in a quarter. We need a CEO that can manage to net earnings.
This just out today, copied from Schwab:
NEW YORK (AP) — Genentech released the results Thursday of three late-stage studies of a multiple sclerosis treatment that showed improved symptoms in patients compared with an established treatment.
The drug developer tested its treatment called ocrelizumab on two types of the disease: relapsing M.S., which affects 85 percent of patients, and a more severe type, primary progressive M.S., which affects 10 percent of people with M.S. There is currently no approved treatment for primary progressive M.S., Genentech said.
In two studies that lasted two years, relapsing M.S. patients showed less flare ups, a reduction of brain lesions and improvement of other symptoms when taking ocrelizumab, which is given intravenously every six months, when compared to a current M.S. treatment on the market called Rebif, which is injected three times per week. Rebif is made by Merck KGaA and EMD Serono Inc.
In another study, patients with primary progressive M.S. on ocrelizumab showed the disease progressed less when compared with those taking a placebo.
Genentech plans to submit data for the treatment to the U.S. Food and Drug Administration early next year for approval. The company does not have an estimate for when the treatment could be sold if approved.
About 2.3 million people worldwide have M.S., according to the National Multiple Sclerosis Society. The chronic disease causes the immune system to attack a substance around nerve cells in the brain, spinal cord and optic nerves. Damage to the nerves can cause muscle weakness, fatigue, eye problems and may lead patients to become disabled.
Sentiment: Strong Buy
We should be getting information on Wilton's presentation at WMS on Pompe's disease; perhaps another imminent target:
"Pompe disease is an inherited disorder caused by the buildup of a complex sugar called glycogen in the body's cells. The accumulation of glycogen in certain organs and tissues, especially muscles, impairs their ability to function normally....Researchers have described three types of Pompe disease, which differ in severity and the age at which they appear. These types are known as classic infantile-onset, non-classic infantile-onset, and late-onset....Pompe disease affects about 1 in 40,000 people in the United States. The incidence of this disorder varies among different ethnic groups.
Mutations in the GAA gene cause Pompe disease. The GAA gene provides instructions for producing an enzyme called acid alpha-glucosidase (also known as acid maltase). This enzyme is active in lysosomes..."
Sentiment: Strong Buy
I recall seeing a reference that BioMarin would be presenting data in the next few days; at the WMS conference? Perhaps some of our uncertainties about the Drisa data will soon be clarified.
Congrats to longs! For me, nearly 16 years. What a ride; bruised, sore, but not broken. Let 'r Buck! Feeling confident from here on out.
I would appreciate insights on how SRPT's technology might address the new targets: MS, cystic fibrosis, and spinal muscular atrophy. What's the cause of these diseases and how might Wilton/SRPT be able to address them? We've got some time until the next piece of DMD news so I suggest some focus on the pipeline here a bit. What the population inflicted with these diseases? Market for new drugs? Is SRPT technology likely to be successful here? Potential timeline to a Phase 1 study?
Thanks to all over the years for the good information!
Sentiment: Strong Buy
Is it 1 recurrence in 15 or 1 recurrence in 51 in FBP group?
I continue to be baffled and frustrated by CPHD's pricing of their products given that they are still not profitable after all these years and they have great, in demand products. They recently announced another quarterly loss, this time at -$16.7 million. I can understand pricing products low for a short time to gain market entry or increase market share but this has been going on for years now - and this for the claimed leading DNA diagnostic technology.
The latest 'fumble' is their new Omni diagnostic tool priced at $2,985 when their lesser competition has a tool selling for $5,000. Why not price the Omni at $4,000;still beat the competition and bring in some more, much needed revenues?
I recall a few years back, several of us discussing here CPHD's cut rate pricing on cartridges needed in third world countries. My recollection was that a normally priced cartridge at $34 was being sold for $9, with some charity groups subsidizing the price and increasing it to $17 to CPHD; still 50% of the normal retail price.
Charity is good, etc etc, but when you are far from being profitable year after year, I question their strategy. And it is us shareholders that are paying the price. CPHD management is still getting their salaries, bonuses and stock options.
The Gates Foundation was created because Bill Gates created and marketed a great product FOR A PROFIT. Microsoft and the Gates Foundation would likely not be here today with CPHD's concept of business and charity. Bishop - you got the cart before the horse!
Anybody out there have reasonable theories on to why our "little train" has been consistently hitting new highs? Closed at $61.15 today.
Our "profitability" sure does not seem to support this action. Could someone be accumulating shares for possible buyout? or is the next quarterly report going to be blockbuster?
I still have a good position in CPHD, but have taken good profits already