Allergan: Valeant’s business model is unsustainable
IRVINE, Calif. — Allergan issued a statement Monday, reiterating the company’s concern for what it calls Valeant Pharmaceuticals’ “unsustainable business model, which relies on serial acquisitions and cost reductions, as opposed to top-line revenue growth and operational excellence,” the company stated.
The statement, issued via BusinessWire, also listed a number of financial analysts and market watchers that Allergan noted have “also publicly expressed similar views,” including:
• John Hempton, chief investment officer, Bronte Capital: "There is a possibility that the whole Valeant exercise is something from the Wizard of Oz,” Hempton noted in a June 13 blog entry on the company’s website. “Profits are going up nicely if you pay no attention to that man behind the curtain — the man being the large restructuring and one-time items."
• Vicki Bryan, senior high yield analyst, Gimme Credit, told Bloomberg reporters, for a May 27 article: "Valeant’s strategy depends on people continuing to drink this Kool Aid it’s serving. … They have to keep buying at a heavier and heavier and more expensive pace to keep this up. What happens when they can’t? There’s no inherent growth, and the debt side of this is a very big part of the story that the stock market is ignoring."
• Jim Chanos, president and founder, Kynikos Associates, noted for a May 15 CNBC Fast Money Halftime Report: "We’re short because it’s a roll-up, and roll-ups present a unique set of problems. Roll-ups are generally accounting-driven, and we certainly think that’s the case in Valeant. We think Valeant is playing some very aggressive accounting games when they buy companies, write down the assets. But really, for us, and we were short before the Allergan announcement, a roll-up is a roll-up, and you have to analyze a company that’s not growing organically and has to deliver value by doing bigger and bigger acquisitions, and usually the companies do an acquisition too far.”
• Matthew Herper, senior editor, Forbes, wrote in a June 12 article: "… [Valeant’s] treatment of figures relating to the industry’s R&D productivity is so indefensible as to beg the question of whether its executives can really command the facts they are using, or whether they really understand the trends on which they say they are basing their business. A one-hour call with four of Valeant’s top executives last night did not convince me otherwise. … By picking only the largest companies, Valeant gets to not include Allergan, which, like Novartis, has an 8% return on R&D by Evans’s numbers. … If Valeant is at war with inefficiency, shouldn’t it buy someone inefficient?"
CVS Caremark receives NCQA Certification in Utilization Management
WOONSOCKET, R.I. — CVS Caremark has received certification by NCQA in Utilization Management, which focuses on consumer protection and improvement.
"CVS Caremark is pleased to receive this certification from NCQA," said Troyen Brennan, chief medical officer of CVS Caremark. "This provides further validation of the company’s focus on providing high quality utilization management services that help our clients manage costs, while also ensuring positive health outcomes for their members."
The CVS Caremark Utilization Management Program is designed to encourage the appropriate and effective use of medications, identify optimal drug use and promote cost-effective drug benefit plan designs for clients. The program is based on evidence-based drug information, published guidelines and consensus statements and standards of medical practice.
"Achieving Utilization Management certification from NCQA demonstrates that CVS Caremark has the systems, processes and personnel in place to conduct utilization management in accordance with the strictest quality standards," said Margaret O’Kane, president, NCQA.
GMDC announces Top 10 Showcase Products from 2014 HBW Conference
ORLANDO, Fla. — The Global Market Development Center has announced the Top 10 Scanned Showcase Products at this year’s Health, Beauty and Wellness Marketing Conference.
The 2014 HBW Conference was held in Orlando, Fla., at the Orlando World Center Marriott from May 29 to June 2. The Showcase room was open for three days during the conference to attending retail and wholesale members.
This year’s HBW Showcase used updated product display scanning via Android smartphone devices. Each item was given a QR code, and the buyers utilized the phone’s QR code scanner to indicate their interest in items as they toured the Showcase room. Each buyer scan was uploaded from the phone in real-time, triggering an immediate email notification to the associated supplier, and facilitating an immediate recalculation of the most-scanned items displayed on the “Showcase Top Ten” boards placed throughout the conference area.
“The new system proved to be a great improvement over the previous one by putting simplified and familiar technology into the hands of the buyers, providing faster product interest notification to the owners of the showcase items, and allowing for real-time product trending. “ said Omar Jibreen, Information Systems Engineer at GMDC.
“The Showcase is traditionally one of our best-selling tools at a GMDC Marketing Conference. Our customers can easily visualize how our products will look merchandised in their stores. Our closing rate for new and seasonal items has risen several fold through the use of the Showcase,” said Brian Bradley, EVP sales and customer development at Lornamead Brands.
The Top 10 Showcase Products are —
- MZ Berger: Ninja Turtles 28-piece display . Description: Teenage Mutant Ninja Turtles 28-piece display — contains 28 pieces. 14-oz., 3-in-1 Body Wash, Shampoo, Conditioner
- EOS: eos 2014 Lip Balm Review. Description: eos 18-piece Organic Lip Balm Display, eos 32-piece Half Panel Lip Balm Display, eos Strawberry, Sorbet and Sweet Mint Clip Strip, eos Pomegranate Raspberry and Blueberry Acai Clip Strip, eos 20-piece Strawberry/Mint Fishbowl
- Alcon Lab: Alcon Eye Care 15-piece display. Description: Alcon Eye Care 15-piece display
- Coola : Hang Ten Display Options. Description: Floor display for Hang Ten Sunscreen, powered by Coola, Custom designs available for discussion, Counter Display and Wing Display options available, Hang Ten Classic Spray SPF 30
- KT Health: KT Tape Athletic Tape Floorstand . Description: 24 pieces, six each Black, Blue, Beige, and Pink, 14-count Cotton Athletic Tape
- Chattem : IcyHot Smart Relief. Description: Icy Hot Smart Relief Floorstand
- Chattem: Nasacort/Allegra Floorstand. Description: Allergy Combo 18-piece Floorstand
- Chattem: Gold Bond Hand Cream Sidekick. Description: Ultimate Healing Hand Cream Floorstand — Holiday Stocking Stuffer
- Cotton Buds: Disney Impulse Assortment (Licensing Product Line). Description: Disney Cotton Swabs Tins, Disney Cotton Rounds Tins, Disney Microfiber Screen Cleaner Tins, Disney Cotton Swab 100 ct. Canisters, Frozen Cotton Swab 150-ct. Canisters, Mickey Hand Soap
- Kellogg: Bear Naked Energy Bar. Description: Bear Naked Energy Bar Hutch