Valeant Pharmaceuticals Business Office Viii: Production Sales Distribution From The Region Of Really.
A fundamental component of the Valeant bull illustration is that they are extremely diversified every bit to their production mix as well as that diversification reduces the run a endangerment of competition products or patent cliffs.
Indeed this slide (data originally from Valeant but slide from the Bill Ackman presentation) projects the overstep x as well as the adjacent x products every bit a pct of full sales:
The overstep x products - according to this slide - are xviii percent of sales. The adjacent x 12 percent of sales. This is much less concentrated than traditional pharma: at Merck as well as Pfizer the overstep x products supposedly stand upwardly for about 50 percent of revenue.
But similar all stock marketplace position numbers I similar to pose them through the plausibility test.
What nosotros are maxim is the overstep x products average 1.8 percent of sales each. The adjacent x average 1.2 percent.
Now lets exactly - for the sake of declaration propose that the overstep production is three percent of sales. And the adjacent 4 average 2.3 percent. Well hence the commencement 5 are 12.2 percent of sales - as well as the adjacent 5 tin alone live on 5.8 percent of sales (or they average 1.16 percent of sales).
But oops, that is likewise much concentration - because nosotros know the adjacent x average 1.2 percent of sales. In fact it is far too much concentration every bit production publish eleven needs to live on to a greater extent than than 1.2 percent of sales.
I convey fiddled amongst these numbers as well as they imply a distribution of sales flatter than I convey e'er seen inward whatever production or category. In companionship to brand the numbers locomote the differences betwixt production sales convey to live on fiddling all through the commencement 15 products.
And holler back these products process a broad form of ailments. Products injected inward a dermatologist's component convey a dissimilar sales profile to say acne cream or psoriasis handling or the handling for mutual coldness sores or herpes exactly because at that spot are dissimilar prevalence of these weather inward the existent basis as well as a dissimilar willingness of people to pay for product.
The existent basis is has skew.
Except that at Valeant everything is every bit apartment every bit a pancake. Far to a greater extent than perfectly fifty-fifty than close whatever existent basis distribution I convey seen for a variable amongst every bit broad an underlying multifariousness every bit medical ailments.
Color me skeptical.
John
Sorry for the absence. Travel for locomote as well as holidays intervened.
PS. Cycling holidays inward Republic of Croatia (call Dejan from Red Adventures) is an close perfect solution for what to produce amongst a teenage boy who needs adventure as well as practice as well as a married adult woman who wants slap-up nutrient as well as historic places to explore. I cannot recommend this to a greater extent than highly. Oh, as well as if the married adult woman wants an electrical cycle Dejan volition organize that too. We isle hopped through the Dalmatians as well as finished inward Dubrovnik. This is an off-the-scale skilful trip as well as doesn't pause the budget. Just produce it.
Alas the Islands of Hvar and Korcula have to a greater extent than hills than Valeant's production distribution.
Indeed this slide (data originally from Valeant but slide from the Bill Ackman presentation) projects the overstep x as well as the adjacent x products every bit a pct of full sales:
The overstep x products - according to this slide - are xviii percent of sales. The adjacent x 12 percent of sales. This is much less concentrated than traditional pharma: at Merck as well as Pfizer the overstep x products supposedly stand upwardly for about 50 percent of revenue.
But similar all stock marketplace position numbers I similar to pose them through the plausibility test.
What nosotros are maxim is the overstep x products average 1.8 percent of sales each. The adjacent x average 1.2 percent.
Now lets exactly - for the sake of declaration propose that the overstep production is three percent of sales. And the adjacent 4 average 2.3 percent. Well hence the commencement 5 are 12.2 percent of sales - as well as the adjacent 5 tin alone live on 5.8 percent of sales (or they average 1.16 percent of sales).
But oops, that is likewise much concentration - because nosotros know the adjacent x average 1.2 percent of sales. In fact it is far too much concentration every bit production publish eleven needs to live on to a greater extent than than 1.2 percent of sales.
I convey fiddled amongst these numbers as well as they imply a distribution of sales flatter than I convey e'er seen inward whatever production or category. In companionship to brand the numbers locomote the differences betwixt production sales convey to live on fiddling all through the commencement 15 products.
And holler back these products process a broad form of ailments. Products injected inward a dermatologist's component convey a dissimilar sales profile to say acne cream or psoriasis handling or the handling for mutual coldness sores or herpes exactly because at that spot are dissimilar prevalence of these weather inward the existent basis as well as a dissimilar willingness of people to pay for product.
The existent basis is has skew.
Except that at Valeant everything is every bit apartment every bit a pancake. Far to a greater extent than perfectly fifty-fifty than close whatever existent basis distribution I convey seen for a variable amongst every bit broad an underlying multifariousness every bit medical ailments.
Color me skeptical.
John
Sorry for the absence. Travel for locomote as well as holidays intervened.
PS. Cycling holidays inward Republic of Croatia (call Dejan from Red Adventures) is an close perfect solution for what to produce amongst a teenage boy who needs adventure as well as practice as well as a married adult woman who wants slap-up nutrient as well as historic places to explore. I cannot recommend this to a greater extent than highly. Oh, as well as if the married adult woman wants an electrical cycle Dejan volition organize that too. We isle hopped through the Dalmatians as well as finished inward Dubrovnik. This is an off-the-scale skilful trip as well as doesn't pause the budget. Just produce it.
Alas the Islands of Hvar and Korcula have to a greater extent than hills than Valeant's production distribution.
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