After being ordered to pay $3billion in a groundbreaking and controversial US court case, GlaxoSmithKlein are taking a long term investment approach with a company acquistion.
Human Genome Sciences Purchased: Several reports indicate today (including one from Forbes magazine) that GlaxoSmithKline (NYSE: GSK) has bought Human Genome Sciences (NASDAQ: HGSI) for $2.8 billion.
The two companies have battled over the price for several months.
GSK believes it needs the latest biotech products and research to offset the slow growth that has hit a number of big pharma companies as many of their blockbuster drugs come off patent.
To close the transaction, GSK increased its offer to $14 a share from $13, writes Douglas A. McIntyre for Reuters.
Forbes notes how cardiovascular disease is the largest cause of death in the world. Of particular interest in GlaxoKleinSmith’s acquistion, is HSGI’s work developing cures for heart disease prevention that are aimed to reduce inflammation in arteries, that many scientists believe causes cholesterol plaque to rupture inside the artery wall, causing heart attacks and strokes and stroke reduction.
GlaxoKleinSmith‘s acquistion of HSGI is viewed as a long term investment where R&D will yield a good return on investment in time.
[I have friends who are academic activists, strongly against human genome dna data collection. So, for the pros and cons on Human Genome Science to the environment as well as being largely unregulated area of law in the USA, also go to Ornl.Gov for more]
My thoughts: muscle repair protein accelerator-bricks. There you go. :)
Photo Caption: The double helix structure of DNA, discovered 15 years after William Astbury‘s first x-ray photographs. Photograph: Deco Images II/Alamy. Guardian.Co.UK – Science.
If you’re an athlete at the Olympics, watch your gene pool too!
~Posted by Horiwoodblog, Aotearoa New Zealand, Polynesia Asia-Pacific. 17.7.12~
[Fonterra votes to be partially globally owned].
In the biggest news story so far this year in New Zealand, concerning farming real estate, the building block of the New Zealand economy, and the biggest cash cow in our history, (dairy farming) Nadine Chalmers Ross was assigned the night shift in over-time to cover the story.
Fonterra farm co-op, made up of 10,500 farmers were proposed a scheme where they could trade shares amongst each other, and also sell to foreign (or external investors) up to 20% of the co-op. Or, to give consent to a trading scheme – where the biggest land mass of useable productive farming land in NZ, went partially on the block as collatoral.
Under strictly private filming conditions, Chalmers Ross explains how a 75% result of voters being ‘in favor of’ would have been the result needed to ensure the co-op’s shareholders would create the stable and unified environment of shareholders, showing trust in Fonterra’s managements future development plans with the $500million plus money, raised from the vote and partial sale of the trading shares plan.
The reporting was worded this way: “Farmers continue to worry that letting outsiders invest in their co-operative will ultimately lead to a loss of control. Among comments from farmers voting against the scheme today were that it takes Fonterra too far away from tried and proven co-operative principles, it is not needed and that it has not been well enough tested.
They also say 50% is not enough and that 75% shareholder support should be required to see it pass. “Anything less than that will actually create a rift in the shareholder base,” said Allister McCahon, a Dargaville farmer.”
Well 2/3rds or just over 60% of farmers agreed. Well below the 75%, the spin doctors of Fonterra, claim it’s enough and they’re romping off with 20% of farmers capitol to invest in arable farming land in new territories abroad.
The benefits: Agricultural knowledge, the scinence of the technology and expertise can now be exported to feed far reaching markets with farming ventures on foreign land. This reduces freight expenses and allows for business networking to develop for the NZ co-op in foreign territories, if the scheme goes well. I hope it does.
The risks: Those dumb balance sheets at AGM’s (in a drastic scenario, such as witnessed in an AIG styled Wall Street banking tale) that declare, ‘oh we made a loss of $200 million over there and $100 million over there.’ Followed by ‘oops, we hope to make it up to you next year,’ so your farming co-op can remain 80% yours. They do happen.
How to reduce this: A more risk-managed culture of shadow managers (of NZ citizenship and preferably children of NZ farmers, Maori farmers children even, for a change!), working with the top execs in each global territory is now needed.
What it says: Both existing capital and projected profit earnings, were drawn down on in this business gamble of measured risk in light of food needs increasing in the world. It allows for 1 in 5, virtual ’Wall Street farmers’ to now own the co-op. They’re soon to be in the mix. Then it becomes a shark chomping game of shares now. Today, farming culture changed. This is perhaps, something that the farming industry is not au fait with, as collective community objectives have made the dairy industry pony up and work together to be the world’s no.1 dairy supplier. It introduces a new element, of comptetiveness now. Naive farmers need to choose who they trust more wisely from here on in. Now the external components of investors, can put pressure on the farmers in the future.
Management: The good - Ralph Norris (who is used to getting paid $20 million a year) is on the board. He’s doing white milk and black milk (dairy and oil portfoilio mix, this year). He sits in the middle of ‘liquid economies NZ’ where soil quality while furthering both dairy’s growth and export product, as well as energy development (that includes oil, mining energy products) must co-exist side-by-side in his two portfolios. Ralph is a good manager. The Co-Op should be able to expect a lot from him. Hopefully Norris and his buds will recoop the investment in strategic ways. (more…)
A question today is: How do you see New Zealand developing new export markets in the health industry?
I think a good start is looking at website: ThomasNet.Com in the USA. It lists ‘small’ businesses who’ve created ways to boost the health and beauty sector. Their ideas are very entrepreneurial and involve scientific thinking.
This topic is an important one in the world, as there are many (due to political decisions) who actually lack regular nutrition in their diets. So, this idea is along those lines in closing the divide of nutrition inequality developing in some countries in such times, as well as thinking entrepreneurial too. Ideas that grow the economy, while doing more good in the world than harm is kinda what the funky, healthy vibe is all about in New Zealand’s future.
Take a look at the website and… if you’re health inclinedwitha brain… you’ll be able to work it out, in a New Zealand context. Of interest too, is how much money these families make by just getting on with it and focussing on wealth creation with investors initial backing. When I first posted this website while living in California three years ago, I did so with the view that entrepreneurial Kiwis (particularly Iwi Maori Kiwis) who read Horiwoodblog, might find value in venturing into the health industry. In those days of 2009, I was selling corporate video concepts and packages to the health sector. ThomasNet.Com was of significance because back then, it used to list the companies annual takings. Thus you knew who to call and pitch to and sell to. Most vitamin companies annual income was US$20 million (minimum). Most of these companies were owned by one family. They were just entreprenerial family-minded biz people. As whanau, these people (in my view) were totally rocking! The website has since made the company earnings private to viewers – but wow! Just know that most of these companies are $20million earners a year (minimum).
Some are $200 million earning (plus) companies per annum. There’s money in making multi-vitamins that boost nutrition and the health industries.
One example of a bigger company is Maat Vitamins. They combine ingredients to make vitamins. They are listed as a ‘custom manufacturer.’
Their markets are: Latin America/Caribbean, Western Europe, Africa, Middle East, Asia, Australia, Europe, Canada and Mexico. Their website is: www.e-maat.com. Maat’s product focus in specializing in being a: Contract manufacturer of vitamins including Ester-C complex with bioflavonoids tablets, vitamin E 400 IU softgels, B-50 complex tablets, vitamin B-6 100 mg tablets, vitamin C 500 tablets, therapeutic vitamin & mineral formula tablets & vitamin B-12 1000 mg sublingual lozenges tablets. Vitamin E tablets help in red-blood cell formation, prevent oxidation of free radicals & treat circulatory problems, lung toxicity, menopause, burns & acne. Vitamin-B tablets balance nerves & endocrine system.
Click on ThomasNet.Com’s website (picture above) to see ideas or products and services you might find useful, to increase your entrepreneurial imagination.
Thanks ThomasNet.Com. Other categories of industry sectors include: Dietary, Food, Health, Herbal & Nutritional Supplements; Vitamins; Nutritional Supplement & Vitamin Contract Manufacturing; Nutraceuticals; Medicinal, Pharmaceutical & Nutraceutical Tablets; Fitness, Sport & Weight Loss Nutritionals; Nutritional Supplement Encapsulation Services; Powder; Tablets; Private Label, Contract Mfg., Contract Packaging, Toll Mfg. & Custom Pharmaceuticals; Amino Acids; Ginseng; Ginkgo Biloba; Echinacea; St. John’s Wort; Saw Palmetto; Herbal Formulas Contract Manufacturing & Packaging, Private Label; Consumer Product Contract Manufacturing; Capsules; Private Label Packaging; Pharmaceutical Packaging; Antioxidants; Bentonite; Botanicals; Gelatin Capsules.
Happy creating, New Zealand. Let’s make Te Ao a healthier, happier and more sustainable place to live in, that’s more humane and ethical. :)
[Nb: Vitamins are a supplement to enhanced health - and should not be viewed in humane societies as substitutes for a nutritious diet of naturallly good and healthy food intake of at least two nutritious meals a day].
~Posted by Horiwoodblog.Com, Aotearoa New Zealand, Polynesia Asia-Pacific. 24.5.12~