Investor and activist Dan Loeb turned all attention on Amgen when his firm, Third Point invested in the biotechnology company and suggested that the drug maker split. That was a week ago and Third Point said in its Oct. 21 investor letter-
“It is well‐established that disparate business units generally benefit from operating separately due to distinct corporate cultures, superior efficiencies, and a greater focus for employees and management alike. Given the diverse nature of its assets—cash‐generative Mature Products and R&D‐intensive Growth Products—we believe that Amgen could benefit from a separation into distinct operating units with separate financial statements and should seriously consider separating into two companies.”
And what is Amgen’s answer? In short, it doesn’t make sense.
Chief Executive Officer Bob Bradway explained that the company’s consolidated supply chain, noting it makes all of its 11 molecules through it, for his opinion.
Bradway told analysts and investors Tuesday at Amgen’s business review in New York, “As we’ve looked at this, we’ve not seen a way through we think unlocks significant value for our shareholders. What I’m not saying is, ‘No, never,’ but right now we’re not convinced there’s a way through that adds value for all of our shareholders.”cialis 36 hour