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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: JHP who wrote (82966)	8/15/2000 11:47:15 AM
From: Knighty Tin	Respond to of 132070

John, I think we are talking about the short term mind set of investors here. Duramed is investing and making strategic moves for the long haul, not the quick pop. Just the opposite of what the poster stated. The Solvay deal penalizes eps now but could greatly boost them in the future. Of course, this is a speculative situation and if an investor wants a quick pop tomorrow, he shouldn't go for a drug co. The roll-out time is too long for short attention spans. I think the poster makes some good points, but here is what I see happening: We have a very small co. taking over a large share of the new prescriptions on a very popular drug. To achieve this, they gave up a lot of profits to Solvay to jump certain hurdles. They had to get in with somebody on a drug this large and they might have cut a better deal. However, it is not like a small co. holds all the cards in the negotiations. Marketing is a tough game and Solvay has some connections Duramed couldn't create for years, if then. So, I am still very positive on this company. But, then, I am willing to wait five years for a quadruple and some lose faith in management when they buy high and it doesn't happen overnight.