Could GSK become the next Enron or Tyco of the Big Pharmas?

I wanted to hear anyone's opinion surrounding GSK and their newest purchase of Reliant. It seems like the company's pipeline is questionable and the company is showing signs of desperation. Reliant is a quick "bandaide fix" however the underlying problems are not going away. Enron felt desperate and we know what happened causing pain to anyone who invested with the company. Tyco diversified and diversified with quick fixes getting away from their core business. Yes, bandaide fixes one after another. With a 25% cut across the board in sales and they are saying there are more in certain regions up to 40%, I am afraid we have only seen the tip of the iceberg. It is obvious the pipeline is not strong.

Originally Posted by Anonymous

I wanted to hear anyone's opinion surrounding GSK and their newest purchase of Reliant. It seems like the company's pipeline is questionable and the company is showing signs of desperation. Reliant is a quick "bandaide fix" however the underlying problems are not going away. Enron felt desperate and we know what happened causing pain to anyone who invested with the company. Tyco diversified and diversified with quick fixes getting away from their core business. Yes, bandaide fixes one after another. With a 25% cut across the board in sales and they are saying there are more in certain regions up to 40%, I am afraid we have only seen the tip of the iceberg. It is obvious the pipeline is not strong.

I understand your concerns, but they are unfounded. I actually worked for Tyco before coming here, and your analogy is flawed but understandable.

Tyco was simply corrupt. They purchased companies and didn't disclose that fact to Wall Street. They simply lied to investors.

GSK has purchased a drug that is growing quickly. Do you honestly think that they could get hundreds of millions of dollars worth of business out of so many physicians if the product was unsound? The drug grew over 60% this year - which means that physicians have used it, like the results, and continue to increase utilization of Lovaza. That CAN'T happen if it is a bad drug. Lovaza competes in a market that is HUGE, and growing quickly. The Cardiovascular space is the place to be as the baby boomers age. To top it off - the drug has virtually no side effects!

Tyco wanted to be the next GE. They grew illegally, because their CEO was a crook. Dennis Koslowski wanted to be know as the next Jack Welch - and would do anything to gain that acclaim.

GSK is simply adding a great drug that is already being prescribed by their current customers. This "bandaide" will provide revenue growth until some of the new compounds make it out of the pipeline. The short term pipeline was weak, and this move addressed that problem. The long term pipeline appears to be very good. Only time will tell for sure.

As a person with knowledge of both companies, this is my point of view.

Do you consider deceiving the Investors regarding the accuracy of the pipeline "non-corrupt"? I agree Tyco went crazy with diversification and became very corrupt. There are lessons to be learned from Enron and Tyco and appears to me, GSK is falling into the same path if their thought process does not change. Once you start to lie about a major portion of your business, it becomes easier and easier to lie about other areas. Do you consider toothpaste and Ribena good solid core products? I am having a difficult time understanding GSK with their goals & objectives. I hope Whitty can turn everything around and make some major changes with the executive committee and management - Viebacher spells trouble all over the place and thank God he did not become the next CEO.

The Pipeline is "Corrupt"??? What do you mean? It looks good on the Internet and appears to be very solid. What do you know?........

Originally Posted by Anonymous

I understand your concerns, but they are unfounded. I actually worked for Tyco before coming here, and your analogy is flawed but understandable.

Tyco was simply corrupt. They purchased companies and didn't disclose that fact to Wall Street. They simply lied to investors.

GSK has purchased a drug that is growing quickly. Do you honestly think that they could get hundreds of millions of dollars worth of business out of so many physicians if the product was unsound? The drug grew over 60% this year - which means that physicians have used it, like the results, and continue to increase utilization of Lovaza. That CAN'T happen if it is a bad drug. Lovaza competes in a market that is HUGE, and growing quickly. The Cardiovascular space is the place to be as the baby boomers age. To top it off - the drug has virtually no side effects!

Tyco wanted to be the next GE. They grew illegally, because their CEO was a crook. Dennis Koslowski wanted to be know as the next Jack Welch - and would do anything to gain that acclaim.

GSK is simply adding a great drug that is already being prescribed by their current customers. This "bandaide" will provide revenue growth until some of the new compounds make it out of the pipeline. The short term pipeline was weak, and this move addressed that problem. The long term pipeline appears to be very good. Only time will tell for sure.

As a person with knowledge of both companies, this is my point of view.

Jack Peter Garnier is the most corrupt CEO on the planet---he has lied to save his own ass for years...will he get away with it, let's hope not.

I agree that JP Garnier is the biggest criminal of them all and is the leader of the executive group with Viehbacher and Stout as the people doing much of his dirty work. They have told too many lies and their tracks cannot be covered. The question, Could GSK be the next Enron or Tyco of the Big Pharmas?.....the answer is definitely. People will start talking unless they are threatened which seems to be common place within this organization. I have first hand knowledge of this. I wish everyone would start talking.

The Pipeline is like Swiss Chesse - full of holes if you know what I mean.

Originally Posted by Anonymous

The Pipeline is "Corrupt"??? What do you mean? It looks good on the Internet and appears to be very solid. What do you know?........

Well if it says it's good on the internet, it must be true, especially if the information comes form the GSK website. You can take that to the bank...

If you take that to the bank, your check will bounce.......oh, that's right, JP plays by different rules. You CANNOT TAKE EVERYTHING YOU READ FOR GRANTED and that includes the website. Stick that in your pipe and smoke it.

JP will be know as the CEO who brought down the first Big Pharma. He must feel very proud.

Originally Posted by Anonymous

JP will be know as the CEO who brought down the first Big Pharma. He must feel very proud.

Which one did he bring down; Upjohn, Parke Davis, Searle, Sandoz, Marion Labs?

Good point. I was considering the amount of people affected by Jack Peter Garnier's actions as the CEO, being enormous and the impact on those who worked for GSK is great. GSK has become very corrupt and with their motto being: Do More, Feel Better, Live Longer.......how can they consider themselves being for the patient or consumer. I guess, being a medical person, this is not ethically or morally correct. They continue to make money with their lies and deceitful actions. Is there any end to this conduct? Help me understand for I am having a difficult time.

Originally Posted by Anonymous

If you take that to the bank, your check will bounce.......oh, that's right, JP plays by different rules. You CANNOT TAKE EVERYTHING YOU READ FOR GRANTED and that includes the website. Stick that in your pipe and smoke it.

sarcasm

A form of irony in which apparent praise conceals another, scornful meaning. For example, a sarcastic remark directed at a person who consistently arrives fifteen minutes late for appointments might be, “Oh, you've arrived exactly on time!”

[Chapter:] Conventions of Written English


The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.

And you CAN take that to the bank....

What are you smoking in your pipe? ....or could it be that orange coolaide. GSK is doing plenty of "Taking it too the bank......." You are trying to defend something that is not accurate..... Hey, I liked your analogy.

Let's all agree the company known as GlaxoSmithKline is "Corrupt" and run by the CEO JP Garnier. He is the one who drove the company into the ground and will continue to do so.....do we have any answers? Let's start talking.

Originally Posted by Anonymous

Let's all agree the company known as GlaxoSmithKline is "Corrupt" and run by the CEO JP Garnier. He is the one who drove the company into the ground and will continue to do so.....do we have any answers? Let's start talking.

Just in case you thought things could not get worst. Wonder how they will cover this up.
LONDON, Nov 26 (Reuters) - The safety of GlaxoSmithKline Plc's (GSK.L: Quote, Profile , Research) top-selling asthma drugs Serevent and Advair is back in the spotlight this week as a U.S. regulatory panel meets to consider their safety in children.

Europe's biggest drugmaker said on Monday it remained confident the benefits of its products outweighed any risks.

Concerns about rare and potentially fatal side effects were raised in briefing documents posted by Food and Drug Administration staff ahead of a Nov. 27-29 meeting of the agency's Pediatric Advisory Committee.

There were nine cases of adverse events in children under 16 using Serevent, or salmeterol, in the year following granting of paediatric market exclusivity in March 2006, including five deaths, papers posted on the FDA Web site show (http://www.fda.gov/ohrms/dockets/ac/...%20Review.pdf).


Serevent, a long-acting beta agonist used to ease breathing, is also included in Advair, Glaxo's biggest product with worldwide sales of 3.3 billion pounds ($6.8 billion) in 2006. U.S. sales accounted for 1.9 billion pounds last year.