Pretty clear, GH and JPW have managed to bring down the house in record time. If their mission was to make the numbers so bad that PF had to sell out of necessity and cause the stock to reach a point of an easy buy for Quest then GREAT JOB. The lab was a bad purchase for PF. Never made any sense to the analysts or the investors. When the viable new products (4K and Rayaldee) didn’t perform to expectations, the cash investment PF made in the lab disappointed anyone monetarily involved. A regional tv commercial isn’t going to move the needle! PF is regarded as a futurist drug guy by the market NOT a lab company owner. His management team has no idea what to do with a lab and GH was expected to wave a wand to make it fit into a drug company. The two industries are clearly different and PF’s team have basically been playing in a game they can’t understand. Until PF sells off the lab, investors will not have faith in any profitable future with his pipeline of pharmaceuticals since his cash burn is all on maintaining an entity that isn’t even near his or his management team’s expertise.
Investing an exorbitant amount of money in marketing and internal operations whilst not realsing any forecasted margins, tightening up compliance to remove any legal doubts, suddenly expanding sales personnel to grow a product that has minimal industry thought leader support, needless expenditures for a DTC marketing effort , a pharmaceutical product with minimal understanding by medical peers and infrequent repeat prescriptions, several insider stock purchases of recently high volume, sudden reduction in stock price, a reallignment of non essential employees (redundancy plans). Something is percolating in the background with this company, keeping up appearances is the underscoring theme. Usually with a company who is in long term planning, one doesn’t see this type of perfect storm. A sell is in the works.
