Ok guys I am looking for some help here. I bought into SIP at 95c only a month or two ago as things were looking rosy and I liked the macro factors that I believe will affect the pharma market over the next few years.
Now they come out with this "bombshell", write downs etc.
Having just had a look through the numbers, is it really that bad for a long term investor? To me it seems like some short term pain, however as long as they stay focussed on the business the positives are still there in the medium term.
Some significant new drugs are coming out of patent, Aus population is still growing at 1.1-1.5% per annum, still aging etc.
Yes competition is stiff and it sounds like people can get drugs made offshore and shipped in for a song. (I for one think this sounds absolutely stupid, if there is something I want the Australian made banner on, its drugs. I am living offshore at the moment and you would be shocked at the lack of regulation in some places, these may be the same places making your next batch of pills. I would hate to think about the standards of manufacture in some of these factories. Any way for another time)
What do people see as the systemic problems here? I think management could do with a damn good shake out thats for sure, but I just dont see the really systemic issues.
Thankful for all points of view. Haka.
PS Still holding.
Add to My Watchlist
What is My Watchlist?