It's a double-edged sword. The consent decrees can go both ways. Pharmaceutical cos with under consent decrees become takeover targets due to perceived financial or operational weaknesses, OR may become attractive after successfully cleaning up their operations. Takeovers seen in Warner-Chilcott by Pfizer, Schering-Plough by Merck, Genzyme by Sanofi, Ben Venue Labs by Hikma, for example. I wonder if the giants are working under the table with the regulators to deploy these consent decrees, and weaken their targets and crater their share prices.
It doesn't work that way. These firms are in the hottest of water when they recieve Consent decrees for manufacturing compliance failures. $15K/day fines until the problems are solved. Abbott survived its CD in part because they were sole providers at the time of certain types of unversally used disposable medical equipment (e.g., syringes, tubing, dressings, etc.). GSK survived in part becuse they moved high value sterile injectible products out of the Puerto Rico facility where the offending solid oral dose products were being manufacured (I was part of a team of ~ 120 consultants sent there to effectively baby sit production and oversee the documentation generated for each batch of product released.) GSK eventually shut the facility down.
CDs do tend to depress company values and stock prices, and tey ecom take over targets. Vultures like Pfizer have a habit of snatching up distressed properties
It's a double-edged sword. The consent decrees can go both ways. Pharmaceutical cos with under consent decrees become takeover targets due to perceived financial or operational weaknesses, OR may become attractive after successfully cleaning up their operations. Takeovers seen in Warner-Chilcott by Pfizer, Schering-Plough by Merck, Genzyme by Sanofi, Ben Venue Labs by Hikma, for example. I wonder if the giants are working under the table with the regulators to deploy these consent decrees, and weaken their targets and crater their share prices.
It doesn't work that way. These firms are in the hottest of water when they recieve Consent decrees for manufacturing compliance failures. $15K/day fines until the problems are solved. Abbott survived its CD in part because they were sole providers at the time of certain types of unversally used disposable medical equipment (e.g., syringes, tubing, dressings, etc.). GSK survived in part becuse they moved high value sterile injectible products out of the Puerto Rico facility where the offending solid oral dose products were being manufacured (I was part of a team of ~ 120 consultants sent there to effectively baby sit production and oversee the documentation generated for each batch of product released.) GSK eventually shut the facility down.
CDs do tend to depress company values and stock prices, and tey ecom take over targets. Vultures like Pfizer have a habit of snatching up distressed properties