Anybody else pick up any Immucor Today? (BLUD)
.
Picked up a bunch for my personal account at $15. Wonder if
Elroy would let me take a 50% position in my game portfolio?
- A.
Immucor Shares Hit 4-Year Low On Justice Dept Antitrust Subpoena
By Donna Kardos, WSJ April 24, 2009
Shares of Immucor (BLUD) fell as much as 34% Friday to their lowest
point since Nov 2004 after the maker of blood- transfusion testing
systems said it received a subpoena from the Dept of Justice as
part of an investigation of possible antitrust violations in the
blood-reagents industry.
Immucor said the subpoena, which came from the Justice Department's
antitrust division, requested documents from Sept. 1, 2000 to present.
The company said it intends to fully cooperate with the investigation.
Immucor said it couldn't provide any comments or additional
information beyond the release.
Analysts said it is likely the Justice Department is looking into
the large price increases Immucor has made over the years, along
with Johnson & Johnson ( JNJ), it's key competitor in the U.S.
blood-reagents market. However, analysts also believe it is unlikely
any price collusion was actually going on.
Johnson & Johnson declined to comment on the matter or on whether
it has received any subpoenas related to the blood-reagents industry.
Shares of Immucor were down 29% to $15 in recent trading.
Earlier, they hit an intraday low of $13.75, the stock's
lowest point since November 2004. The stock is now down 43%
year to date.
Johnson & Johnson, meanwhile, fell 1.4% in recent trading
to $50.70. The stock has fallen 15% year to date.
"The market domestically is essentially a duopoly between
Immucor and J&J, and there's been price increases," Susquehanna
Financial analyst David Turkaly said in an interview. "It's possible
that one would raise [its prices] and the other would follow,
but that doesn't necessarily mean anything illegal" was going on.
Joshua Zable, an analyst with Natixis Bleichroeder, also said the
government is likely probing for some form of price collusion,
though he found it difficult to believe any price collusion could
have actually occurred. "Price collusion would indicate they were
working together," he told Dow Jones Newswires. "I don't think they
were working together because they are competitors. And they are
good competitors."
Zable noted that historically, J&J has been the price leader, and
Immucor has typically matched its price increases. "Somebody
probably raised a question, and it's [the Justice Department's]
job to investigate," he said.
Turkaly noted price collusion would be "a pretty difficult thing
to prove," and even on the chance that it was proven, he doubts
the companies would be significantly impacted, given the role they
play in the blood market. At worst, if anything criminal were proven,
Turkaly expects the government would impose a fine, pricing
constraints or both.
The blood-reagent products from Immucor and Johnson & Johnson
test blood samples that are donated and used for transfusions. "Their
products are absolutely essential, important parts of the blood
supply in this country," Turkaly said. "Is that the kind of company
you're going to punish severely and put out of business, given
what they do and what they are to the health-care system?" |
