GSK shares pounded after Q2 earnings miss

Discussion in 'GlaxoSmithKline' started by Anonymous, Jul 23, 2014 at 8:12 AM.

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  1. Anonymous

    Anonymous Guest

    Lowers full year guidance. Hahaha. Patient First failing big time. Advair down 19% YOY and Wall St hated the performance the the new Breo/Aniro respiratory portfolio. Leadership failing amid massive corruption. How long before there are changes at the top? The train wreck is being exposed to the world one quarter at a time. Love it!!
     

  2. Anonymous

    Anonymous Guest

    This is what happens when your best reps leave because they are tired of taking tests and role plays in order to justify their jobs... You reap what you sow ..
     
  3. Anonymous

    Anonymous Guest

    How do you like change now? GSK's operating model appears broken. Witty brought in too young and inexperienced. You need look no further than his handpicked chief of North America. This has been a train wreck from the start.
     
  4. Anonymous

    Anonymous Guest

    While I don't disagree with your assessment of Patient First...
    This is also what happens when managed care pulls the rug out from under you. ExpressScripts dropped the Advair franchise. Nail in the coffin.
     
  5. Anonymous

    Anonymous Guest

    And why did Express pull the rug out from under us? Because leadership decided they weren't going to discount as much in order to increase profits. Heard Jack Bailey almost got the axe after this moronic move.

    Failed leadership guys. It's not not the sales forces fault. Unfortunately we take the blame.
     
  6. Anonymous

    Anonymous Guest

    there are systemic problems with this company...previous manufacturing problems in puerto rico, trouble with the FDA, manufacturing problems in vaccine plant in Quebec ....throw in some bribery scandals, compliance issues around the GSK world, sales dropping, stock price dropping...expect more layoffs
     
  7. Anonymous

    Anonymous Guest

    While there is always equal blame to go around, i.e. managed care and sales reps execution, this situation regarding Advair, falls directly on Jack B., Mark Johnson, Rob Yagt, Tom Scales. In spring, summer and fall of 2012, the ESI team was in very contentious negotiations with ESI. ESI negotiations team was lead by the former Medco team, Ed A. and Jason. The ESI/Medco team asked that rebates simply be aligned between the two PBMs now that they were ONE organization. In other words, bring the ESI rebates up to the Medco rebates and the negotiations would be over and Advair would be secured thru 2015. In addition, the ESI team asked and received confirmation that ESI/Medco would give priority review to Breo when it was launched.(not to be confused with a guarantee formulary placement). Additionally, Lovaza, Jalyn and Avodart were protected with little incremental investment. All toll, the cost to protect the franchise was an incremental $20m-$22 in rebates.

    Not only did the above mentioned senior leaders say NO....they wanted to PULL BACK rebates to the tune of $5m. Thats right, the brain trust wanted to money back despite the fact that the new PBM was providing pharmacy benefits to approximately 80m-100m(depending on how you count it) individuals.

    As any one could predict, their was a meltdown in Franklin Lakes NJ. Eddie A and Jason informed GSK they were going to move against Advair beginning in 2014 and it would be painful for the organization. The above mentioned leaders were just simply belligerent. They indicated in no uncertain terms that ESI leadership had no idea what they were doing and how much disruption and patient unrest this would cause. Adding, that "advair has 85% market share and there is no way Symbicort or Dulera would pick up the slack.

    The negotiations went back and forth for the entire 2012 period. It was reported that negotiation even went on in 2013 for a bit. However the arrogance and recklessness of the senior leaders was only surpassed by their ignorance of the managed care marketplace. They gentleman had no idea what they were doing. However, if you were to ask them, because they had done such a stellar job at Lilly, they knew what they were doing. After all, they were akin to, as was depicted in the CNBC expose on Enron, "The smartest guys in the room".

    They were warned that not only could ESI do this, BUT THAT THEY WERE GOING TO DO THIS! They were simply incompetent.

    Read the Bloomburg news story today....even the analyst, James Hay hints at the incompetence of management.

    How these gentleman have jobs when they cost GSK and its shareholders more $300m dollars in lost sales of Advair alone, is stunning.

    I am no rocket scientist but investing $20-$22m to protect $300-$400m seems to be a good ROI. But you alway have Patient First...yeah thats a great ROI.

    Amazing how any of them still have their jobs
     
  8. Anonymous

    Anonymous Guest

    Great quote from a Bloomberg article:
    “I really hoped we were at the end of being walked down on management expectations,” said James Hay, an analyst for Brewin Dolphin, which manages about 26 billion pounds ($44 billion). “It’s frustration, purely, because we keep believing management and they keep not delivering.”
     
  9. Anonymous

    Anonymous Guest

    #7 is true.
     
  10. Anonymous

    Anonymous Guest

    #7, I have copied and saved your comments. Thank you very much. If there are no massive changes at the senior leadership positions then we are truly hosed. We need intelligent action NOW, but am not hopeful.
    Exit strategy is in place - it will be gsk's loss (again) if that trigger is pulled.
     
  11. Anonymous

    Anonymous Guest

    The devastation of a king of the hill- Advair franchise. None of our new products will flourish with pea brained leadership running GSK. I am embarrassed to be a part of this organization, which is a total fraud. Been here 28 years. Only proud first 23. Ships are suppose to sail horizontally not vertically!!
     
  12. Anonymous

    Anonymous Guest

    Unreal These people cost the company 500 million and I have to worry about doing well on my Patient First tests to earn a bonus. As a 30 year employee, truly embarassed. Bring on the packages.
     
  13. Anonymous

    Anonymous Guest

    Someone tell bllomberg that while advair patent expired there are no generics. The advair decline is due to managed markets strategy debacle.
     
  14. Anonymous

    Anonymous Guest

    This speaks volumes. Well said.
     
  15. Anonymous

    Anonymous Guest

    somebody call Court Horncastle. Get him back to US Pharma....stat
     
  16. Anonymous

    Anonymous Guest

    Here, Here......Even with a few less years than you, the ink wouldn't be dry from the printer before I signed it
     
  17. Anonymous

    Anonymous Guest

    The impact these people have had on GSK is far greater loss than $ 500 million. Probably in the Billions at this point. My small allotment of a few hundred share grants is worth several thousand less this week than last - makes me wonder if upper management was able to sell their shares several weeks ago when they knew our numbers were tanking.
     
  18. Anonymous

    Anonymous Guest

    How to view a valuation loss? Stock dropped 9% in 3 days, I believe the market cap for gsk is around $140 billion, so that means....?
     
  19. Anonymous

    Anonymous Guest

    GSK had $4 billion set aside from the Novartis sale to buy back stock and raise the individual value of each share for shareholders (totally a Warren Buffet favorite move). The company announced during the earnings announcement that it now won't do any of that. This is a huge indication that this was much, much more than a $500 million shortfall. GSK is very worried about the future and decided holding on to $4 billion was better than giving it back to shareholders. If there was one move that should unnerve shareholders the most, it was this.
     
  20. Anonymous

    Anonymous Guest

    Dear JB,

    Please refer to post #7 and tell us how your strategy is working out. Can you please also let us know what rebate % you had to give to now get Advair back on formularyfor 2015. You and your cronies from LILLY have destroyed this company and peoples careers. As a stock holder and 22 year employee of the company i just can not understand how you continue to keep your job, yet all the people around you have taken the fall.