HGR unknown

HGR have previously advised that negotiation in China will take...

  1. 3,648 Posts.
    HGR have previously advised that negotiation in China will take an additional 6 - 8 months (at the time of the announcement).

    I think HGR should tell the Chinese no deal. The OraLine product and in fact all HGR products are state of the art and there should be no negotiation over where OraLine is made, etc.

    The US and world markets are fine and will occupy HGR for some time to come. Also, manpower and money should not be wasted on China.

    However, I believe the Chinese will come back ast there is not competitor with SB in this market segment - despite what down rampers are saying. My rational is:

    1) The Chinese are not stupid - it is only the p rice that is holding them up!
    2) HGR will have FDA "approval" soon enough and the Chinese grudgingly respect that.
    3) HGR already have enough on their plate and limited cash to follow up every sale - no matter how lucrative it appears.
    4) Despite (3) above, time is on HGR's side - the Olympics are on soon, etc. and 6-9months for a sale is totally bogus!
    5) IF HGR fail to sell into China, the rest of the world will not see that as a failure on HGR's part, merely one of China's inability to be flexible with the west.
    6) If HGR wait and fail, they will loose face in Asia and that is worse than not getting the sale.
    7) A "friendly" stand off with China may convince the Chinese that an FDA "approval" is afer all, a confirmation of the products claims, efficacy, etc., and will bring them back to the table - with little or no loss of face on either side.
    8) If at the time China returns to the table, they gain face by negotiating production within China and HGR could then be magnanimous and reduce the cost to the Chinese while gaining a China manufacturing facitlity - lower the cost of production.

    Guess this is all out of the blue, but that HGR announcement is typical and should not deter HGR from its other efforts - especially when there are so many other options for China.

    I hope someone from the company is listening.

    BTW, the Chinese company acting as a consultancy - they should be sacked immediately and a western concern, with Chinese connections substituted - one whose loyalties are not confused with operations already in China.
 
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