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Depomed, Inc. (DEPO)

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  • What the backlash against opioids could mean for companies in the drug supply chain
    Headline 3 hours ago. Goes on to state that large, diversified companies have little risk, however, those companies with the majority of their revenue coming from opioid products, much more risk! Give it time to sink in...then the drop.

    What the backlash against opioids could mean for companies in the drug supply chain

    Nicole Sinclair 2 hours 26 minutes ago .

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    Seized prescription drugs displayed in a glass flask in the controlled substance room of the Utah state crime lab (AP Photo/Rick Bowmer)

    As the opioid crisis reaches new levels, seized prescription drugs displayed in a glass flask in the controlled substance room of the Utah state crime lab (AP Photo/Rick Bowmer)

    Lawsuits against opioid drugmakers are trickling in, and they may be just the start of a broader backlash against the industry. At the end of June, Oklahoma became the latest state to accuse US drugmakers of misrepresenting the risks of opioid drugs, following Mississippi, Ohio and Missouri.

    But while overall damages sought by the suits could be high, the negative impact appears to be manageable for most of the companies involved in the manufacturing, marketing, and distribution of the drugs.

    To be sure, some drugmakers have outsize exposure to opioids. But opioids account for a very small percentage of prescriptions written, which is important for investors to keep in mind to understand the scale of this issue for companies along the supply chain.

    Big drug makers are diversified

    The opioid epidemic has been tied to the deaths of an estimated 91 Americans every day, and it has contributed to surging health care costs. However, for most individual players in the industry, the exposure to opioids is minimal. These companies include Johnson & Johnson (JNJ), Teva Pharmaceutical (TEVA), Endo International (ENDP), and Allergan (AGN).

    Teva’s $864 million in revenue from its two opioid drugs over the past five years is just a small fraction of the company’s $21.9 billion reported last year alone. The $457 million in revenue from Allergan’s two opioid drugs since 2012 compares to the company’s $14.6 billion in revenue last year. Janssen’s $3.0 billion in revenue from its two opioid drugs over the last five years compares to $33.5 billion last year for the whole pharmaceutical division and $71.9 billion for all of Johnson & Johnson, including its consumer and medical device divisions.

    Opioid litigation could come with substantial payouts that are far more costly than just the loss of these sales. But analysts argue that the risk is limited.
  • Ashley, if I didn't know any better, I would say that you are Angel with a new account. Your logic and reasoning are the same. By the way, f you are going to spend all weekend dissing my claims, please know what you are talking about. This stock will be dogged until the opioid crisis is addressed by Congress. Enjoy your wasted hours of analysis. Facts are facts. I still say single digits are attainable...in the near future.
  • One year target:
    DEPO: $14.25, current price: $10.78, catch up: 32%
    HZNP: $15.95, current price: $13.65, catch up: 16%

    So, HZNP has no where to go but DEPO has a lot to catch up.
  • Reviewing DEPO financial, I believe DEPO is getting strong.
    Moody's and S&P upgraded DEPO financials. But I look at Q2 and see a lot of positive points as follow:
    DEPO reported cash position of $194.4 m at the end of Q1 2017. At the first week of Q2 2017 (April) it paid $100 m of its high interest rate loan plus $4 m fee based DEPO filing. So, the cash position went down to $194.4 m - $104 m = $90.4 m. During Q2, it cut 20% force work or 30 people and paid $5 m of severance payment according to DEPO. This put cash position to $85.4 m.
    In early July 2017, DEPO reported cash position of $117 m at the end of Q2 or at the end of June. SO, DEPO added $31.6 m during Q2 quarter ($117 m - $85.4 m = $31.6 ). Thus, not only DEPO added a huge cash it also also cut debt and cut work force which add more saving in Q3 and after Q3. Basically, following recent actions, it saves $10m of interest payment and $7 to $9 m from work force reduction. However, this is not the end of saving. Also, in July 2017, DEPO laid off two SR VPs (Thadd Vargas and Srinivas Rao) according to DEPO filing. DEPO probably laid off more workers to save but not indicated in the filing.
    More saving by lowering R&D expenses for time being. In addition, DEPO plans to refinance to lower its interest payment.

    I like new CEO strategy. He is growing what DEPO has and focusing on current products until DEPO financials become very strong and then he will go for acquisition or become acquired.
  • Sherman, you have pointed out that the recent dips in price here have been low volume days. Well, today is above average (already) and dropping. Sounds like selling to me.
  • Hey Ashley, with all your weekend and over-night posts, are you sure you are not a paid pumper?
  • OK, here is a quiz for anyone that is trying to say DEPO is a better investment than HZNP. Not a trick question, so take your time in responding Steve, Ashley and stooges...since bottoming at $9.38 (DEPO) and HZNP at $9.45...which has performed better. DEPO is up about 12% and is treading water. Horizon is up 40% and surging. So, wait for it, which has been the better performer? Both suck compared to their highs of the last 24 months, but which has provided the best recent return? Wake up DEPO dopes. You are experiencing the headwind with opioid headlines that HZNP endured for many months. I speak from direct experience.
  • Today's News, July 19, 2017
    1:51 pm ET
    *Seeing Notable Block Trade In Depomed, 1.1M Shares At $10.55/Share
  • Ok, let's try this. How many of you would like Angel to shut up and stop "provoking" others? How many wish he would take his stupidity elsewhere? How many think he has NOT provided any useful comments or analysis? How many wish he would shrivel up and grovel in his hovel?
  • So sorry everyone...I was SOOOO wrong when I said the stock would tank today! I'll try to be more accurate in the future! Idiots!
  • Steve/Javan, I do appreciate your information and logical support for your projections. So refreshing to have facts and analysis and not the three stooges spouting off with no facts, support or knowledge. We may not agree on where the stock price will go, but at least you are civil and, unlike the Republicans and Democrats, we can respectfully disagree. .
  • Thanks to the stooges Sherman, I , too, share your sentiment. Angel has a mouth like his mother's gaping hole.
    I just hate to wish bad will on everyone else, but there are always innocent casualties in the fall out. There was a opioid OD headline about a 10 year old today. Let that sink in in the morning.
  • I guess there's no take-over deal yet?
  • Can't wait til the short sellers kicking down the sad POS again.
  • Oh, you foolish pumpers. You just don't get it....hit your numbers, you go up a dollar or two; miss, even by a penny or two and you are in the tank. One headline, and you are in the tank. TOO MUCH VOLITILITY!
  • I will be much more convinced I DEPO can pass break and hold $11.
  • Earnings next Tuesday. CEO doing a great job!
  • Just one headline...from today's Assoc. Press...out of Miami..

    MIAMI (AP) — A 10-year-old boy from a drug-ridden Miami neighborhood apparently died of a fentanyl overdose last month, becoming one of Florida's littlest victims of the opioid crisis, authorities said Tuesday. But how he came into contact with the powerful painkiller is a mystery.

    Fifth-grader Alton Banks died June 23 after a visit to the pool in the city's Overtown section. He began vomiting at home, was found unconscious that evening and was pronounced dead at a hospital. Preliminary toxicology tests showed he had fentanyl in his system, authorities said.

    "We don't believe he got it at his home," Miami-Dade State Attorney Katherine Fernandez Rundle said. "It could be as simple as touching it. It could have been a towel at the pool."

    She added: "We just don't know."

    The case has underscored how frighteningly prevalent fentanyl has become — and how potent it is. Exposure to just tiny amounts can be devastating.

    Investigators said Alton may been exposed to the drug on his walk home in Overtown, a poor, high-crime neighborhood where Assistant Miami Fire Chief Pete Gomez said he has seen a spike in overdoses in the past year and where needles sometimes litter the streets.

    "There is an epidemic," Gomez said. "Overtown seems to have the highest percentage of where these incidents are occurring."

    The three-block walk between the pool and Alton's home took him down streets that appeared relatively clean Tuesday, but on the block in the other direction from his home, trash littered the pavement and empty lots. Homeless people slept in the shade of an Interstate 95 overpass.

    Detectives are still trying to piece together the boy's final day. Rundle appealed to the public for information.

    "This is of such great importance. We need to solve this case," she said. "I believe this may be the youngest victim of this scourge in our community."

    The boy's mother, Shantell Banks, was informed of the preliminary findings last week. A distraught Banks told The Miami Herald that her son was a "fun kid" who wanted to become an engineer and loved the NFL's Carolina Panthers, especially Cam Newton.

    Jessie Davis, who lives in an apartment house next to the building where Alton lived, said her grandchildren, ages 8, 9 and 10, regularly make the same walk to the nearby park with a swimming pool. She said she initially thought the pool water made Alton sick and was shocked by news reports that he had been exposed to fentanyl.

    "Where would a 10-year-old baby get something like that?" Davis said.

    Thinking about her own grandchildren going to the pool, Davis said, "I'm going to tell them, 'Don't touch nothing.' I don't know whether they think it's candy, but somebody needs to tell these kids something."

    The Florida Department of Children and Families said it is conducting its own investigation, in addition to that of the police.

    Fentanyl is a synthetic painkiller that has been used for decades to treat cancer patients and others in severe pain. But recently it has been front-and-center in the U.S. opioid abuse crisis.

    Perhaps best known as the drug that killed pop star Prince, it is many times stronger than heroin. Dealers often mix it with heroin, a combination that has proved lethal.

    Fentanyl is so powerful that some police departments have warned officers not to even touch it. Last year, three police dogs in Broward County got sick after sniffing the drug during a federal raid, officials said.

    Gomez said his crews wear long sleeves, coveralls, gloves and masks while handling fentanyl. And "you never want to start reaching into people's pockets," he said, explaining that crews often cut people's pockets open for fear of pricking themselves with needles.

    The Florida Legislature addressed the epidemic, passing a law that imposes stiff mandatory sentences on dealers caught with 4 grams (0.14 ounces) or more of fentanyl or its variants. The law also makes it possible to charge dealers with murder if they provide a fatal dose of fentanyl or drugs mixed with fentanyl. The law goes into effect Oct. 1.

    Nearly 300 overdose deaths in Miami-Dade County last year involved variants of fentanyl, according to the medical examiner's office. Statewide, fentanyl and its variants killed 853 people in the first half of 2016. Of those, only nine were younger than 18.
  • Angel, you really cannot see what a terrible investment DEPO is, can you? You rode this pony down and it is a loser. Yet, you defend it like it's gold. What moron does that? At least HZNP is up almost 40% from their lows. DEPO, not so much. Why do you defend this dog so much? Put it to sleep and out of it's misery. .
  • You are a spineless weasel, Angel. Pure loser...in investing, in life and as a person. No character, just a loser.