Sirona Biochem Announces Positive Safety and Efficacy Data for Innovative Skin Lightening Compound
Sirona Biochem Announces Positive Safety and Efficacy Data for Innovative Skin Lightening Compound SBM-TFC-1067 Accepted as Abstract Presentation by IMCAS
– Momentum Public Relations – June 16th, 2016
Sirona Biochem Corp. (TSX VENTURE: SBM) (FRANKFURT: ZSB) (XETRA: ZSB) (the “Company“) announced positive preclinical safety and efficacy data with SBM-TFC-1067 in a 3-D human skin-like model was accepted as an abstract for oral presentation by Sirona’s Chief Scientific Officer, Geraldine Deliencourt-Godefroy, at the IMCAS Asia Conference in Taipei on July 31, 2016.
Sirona has now demonstrated significant skin lightening in a model used by cosmetic scientists and leading cosmetic corporations around the world. In the study, SBM-TFC-1067, was topically applied daily to a MatTek Corps Melanoderm 3-D human skin model for 14 days using 3 different concentrations (0.1, 0.05 and 0.01{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}). Pigmentation was evaluated on days 0, 7, 11, and 14 using a chromameter to measure brightness (L*D65). Total melanin content was quantified after day 14. Results showed a statistically significant difference in surface reflectance with the 0.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and 0.05{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} concentrations of 1067. There was also a significant reduction of melanin quantity, which translates to visibly lighter skin.
The full abstract can be viewed on the IMCAS website here: http://www.imcas.com/en/attend/imcas-asia-2016/program/session/6150
“This is definitely good news for the millions of individuals around the world with hyperpigmentation or melasma”, said Attila Hajdu, Chief Business Development Officer of Sirona Biochem. “This exciting new data shows significant reduction in pigmentation without toxicity in human skin and being accepted as an abstract in the clinical dermatology stream at IMCAS is scientific validation.”
About IMCAS
Since its inception a decade ago, IMCAS has become one of the most important international programs dedicated to skin treatments. IMCAS Asia 2016, will bring together practitioners from across the Asia-Pacific region for informative and engaging exchanges. Over 2000 attendees and 80 exhibiting companies will come together for three days of intense learning in Taipei. Large cosmetic company representatives will also be in attendance to learn about the most innovative advances in the dermatology industry.
About Sirona Biochem Corp.
Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary platform technology. Sirona specializes in stabilizing carbohydrate molecules with the goal of improving efficacy and safety. New compounds are patented for maximum revenue potential.
Sirona’s compounds are licensed to leading companies around the world in return for licensing fees, milestone fees and ongoing royalty payments. Sirona’s laboratory, TFChem, is located in France and is the recipient of multiple French national scientific awards and European Union and French government grants. For more information, please visit www.sironabiochem.com.
About the Skin Lightening Project
Sirona Biochem’s French subsidiary TFChem received a $1.9 million grant in November 2011. This project is co-financed by the European Union and Europe Witnesses in Haute-Normandie with the support of the European Regional Development Fund (E.R.D.F.). A consortium of partners, including the University of Rouen (LMSM EA4312), contract research organization Biogalenys, and TFChem has been assembled to advance this project. The French government and EU are looking to promote and initiate collaborative projects that are focused on the development of new products and services containing a high level of innovation.
- Published in Business, Life Sciences, News Home, Sirona Biochem
Sirona (SBM:tsxv) Announces Wanbang to Proceed with Pre-IND and Milestone Payment
Sirona Biochem Announces Wanbang Biopharmaceuticals to Proceed to Pre-IND Testing and Receipt of $300,000 USD Milestone Payment
– Momentum Public Relations – June 13th, 2016
Sirona Biochem Corp. (TSX VENTURE: SBM) (FRANKFURT: ZSB) (XETRA: ZSB) (the “Company“) today announced that Wanbang Biopharmaceuticals has confirmed they will be proceeding with studies to prepare for Investigational New Drug (IND) filing for the anti-diabetic SGLT2 Inhibitor, SBM-TFC-039. IND filing and approval is required to proceed to clinical testing. Sirona Biochem has received a milestone payment of US$ 300,000 from Wanbang Biopharmaceuticals.
The set of studies, which will comprise of CMC (chemistry manufacturing and controls), sample preparation and any additional toxicology and pharmacokinetic studies, will be in accordance with the China Food and Drug Administration for enabling IND filing. Successful IND filing will result in a US$ 500,000 payment to Sirona Biochem as part of the US$ 9.5M in upfront and milestone payments according to the license contract with Wanbang Biopharmaceuticals.
“Based on promising results in our first set of studies, we will move the drug to the next phase and prepare for clinic trials,” said Ning Yuan, Vice President Business Development at Wanbang Biopharmaceuticals. “We are very pleased with the results and the productive collaboration with Sirona Biochem.”
“The advancement into pre-IND means that our partner is close to moving into the clinic with our SGLT2 inhibitor,” said Dr. Howard Verrico, CEO of Sirona Biochem. “This next step represents a significant achievement on this project as we continue toward commercialization in China and strengthen our negotiation position on global partnering. We look forward to continued success.”
About Wanbang Biopharmaceuticals
Wanbang Biopharmaceuticals is the leading pharmaceutical company in China that specializes in research, production and marketing of medicines for diabetes, cardiovascular disease and endocrinology. Among domestic pharmaceutical companies, Wanbang Biopharmaceuticals is one of the largest manufacturers and marketers of a comprehensive portfolio of drugs for diabetes.
Wanbang Biopharmaceuticals is a subsidiary of Shanghai Pharmaceutical Group which is listed on the Shanghai Stock Exchange.
About Sirona Biochem Corp.
Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary platform technology. Sirona specializes in stabilizing carbohydrate molecules with the goal of improving efficacy and safety. New compounds are patented for maximum revenue potential.
Sirona’s compounds are licensed to leading companies around the world in return for licensing fees, milestone fees and ongoing royalty payments. Sirona’s laboratory, TFChem, is located in France and is the recipient of multiple French national scientific awards and European Union and French government grants. For more information, please visit www.sironabiochem.com.
- Published in Business, Life Sciences, News Home, Sirona Biochem
IWS Featured on CNN Money
International Wastewater Systems (IWS:CSE) Featured on CNN Money
– Momentum Public Relations –
CNN Money, the world’s largest business news site, recently interviewed Lynn Mueller, CEO of International Wastewater Systems Inc.
The feature interview highlights key components of International Wastewater’s proprietary technology and outlines how the company’s solutions are being installed in a variety of locations around the world.
“We quickly went from being a local, small company to a worldwide operation. We’ve seen markets around the world demanding the product,” Mueller said, adding that his company has an additional $80 million worth of projects in the works.
The link below features the full article on CNN Money by reporter Jacqueline Wattles.
Mr. Mueller believes that the most pressing global challenge of our generation is the need for everyone on the planet to reduce the energy wastage and minimize carbon output. IWS has responded to the need by developing easy to use technology that recovers heat from waste water.
IWS has been able to form alliances with some of the world’s leading water companies as a result of the quality of its products and ease of the application of its technology. The company has recently updated its pipeline of projects, including the upcoming installation of a SHARC wastewater heat recovery system at a facility operated by the Australian Wool Testing Authority in Melbourne, Australia.
IWS continues to work in close collaboration with some of the world’s major water utility companies in North America and Europe, many of whom are interested in supporting the deployment of IWS technology across their waste water infrastructure. The goal is to contribute to the international carbon reduction program enshrined at the 2015 United Nations Convention on Climate Change in Paris (COP21).
Commenting on the technology, Alex Mortlock, Strategic Planning Manager-Wastewater Infrastructure for Severn Trent (a FTSE 100 Company with wastewater operations in the UK and internationally) said: “having been introduced to SHARC technology during the second half of 2015, we are keen to explore the opportunity that IWS could create for us through their SHARC and PIRANHA technologies. We are currently reviewing the suitability of SHARC for use on one of our own buildings and will be investigating further opportunities to utilize the sewage flow contained in our 91,000 kilometers of sewers.”
Despite its success so far, IWS still faces the challenge of converting the established thinking of combustion based heating engineers. However, with the support of a number of UK and EU water companies, the company is being asked to respond to inquiries from single building adopters as well as developers looking to include low carbon district heating solutions into their project plans.
The UK’s first sewage to heat operation at Borders College in Galashiels, Scotland is an excellent example of how water resources can be harnessed and maximized. The IWS technology was launched in December 2015 and has enabled IWS to showcase the credentials of the SHARC technology. It functions using a 1 km underground heat distribution network, retrofitted to older building stock, and demonstrates how the system can link into town sewer facilities, significantly increasing the market opportunity to heat buildings with limited water consumption.
Scottish Water Horizons has indicated that it is very pleased with the results so far and is looking forward to ongoing environmental and heating cost benefits.
Alan Scott, Finance Director of Scottish Water, says; “this initiative builds on our work to use Scotland’s water resources to help generate renewable energy, through the likes of hydro power schemes, helping to reduce costs and build an increasingly sustainable Scotland.”
IWS is working to capitalize on the many global opportunities that are available by building the strategic relationships necessary for the future success of its solutions.
- Published in Blog, Business, Green Technology, International Wastewater Systems, News Home, Technology
Opportunity on the Rebound
Opportunity on the Rebound
– Momentum Public Relations –
It is tempting to spin a number of mining clichés when referring to the somewhat surprising rise in the TSX-Venture exchange. Are savvy investors in these stocks “sitting on a gold mine”? Could the truth behind the recent strength of the embattled junior exchange be “buried somewhere”? Enough with the clichés.
At this point many investors are, at the very least, sitting up and taking notice. It would be easy to dismiss the recent rebound of the Venture exchange if it could be explained by a general rise in worldwide markets or a discernible spike in commodity pricing. However the upward trend in the Venture index is occurring at a time when the Dow and the TSX have not shown sustained gains and when overall commodity pricing is volatile at best.
The upward momentum at the Venture exchange is a relatively recent phenomenon. In the past few years the index, weighted to some degree by under-performing mining and resource companies, has declined precipitously moving from around 2200 down to lows that breached the 480 mark. The index has risen from the 490 range up to levels of 530 and higher in the last 30 days. This would appear to defy conventional wisdom.
Throughout 2015, there were a number of market observers predicting everything from further steep declines to a complete collapse of the exchange.
http://business.financialpost.com/news/energy/tsx-venture-index-sinks-below-500-as-long-march-downwards-shows-no-signs-of-letting-up?__lsa=4d9c-332c
The recent strength of the Venture exchange could be dismissed as a mild correction; undervalued markets frequently adjust to respond to a perceived over-correction. There is no doubt that this resource-heavy exchange has suffered from investor fatigue. It has always been a place to take risks. However, the appetite of high-risk investors became much less robust post-2008.
Overall, most experts are cautiously optimistic about the Venture’s future because everyone recognizes that the resource sector always bounces back. The recent shift in fortune may signal that the appetite for risk is returning and that investors are prepared to own some small-cap stocks again. Meanwhile, this may be the right time to seek out undervalued stocks that have solid assets and reasonable growth prospects.
Investors may want to examine a number of individual smaller gold mining prospects that have begun to exploit reserves. Observers are starting to identify gold plays that, at current bullion prices, provide plenty of reason for optimism. Gold mining operations with solid resources and low cost of extraction can generate solid profit and create shareholder value when the commodity is trading in the area of USD$1200 to $1300 per ounce.
http://www.midasletter.com/2016/02/sptsx-venture-composite-index-gold-is-the-breath-of-life/
When it comes to investing, averages can be moderately helpful. Averages are a widely-used metric that provide general information and illuminate big-picture trends. However, averages can mask a number of important realities. In any investment portfolio that, “on average”, is in decline there are almost always stocks that are gaining.
The current rebound of the Venture exchange offers an opportunity to do two things simultaneously. First, it may be possible to ride the general wave of upward movement. Second, by scrutiny, it may be possible to find stocks that will rise more rapidly than the averages.
An experienced miner knows that it is often necessary to dig beneath the surface to find gold. Similarly, investors who make the effort to dig beneath the surface may discover hidden gems or uncover golden opportunities.
Tips From the World’s Best Investors
Investing Tips from the World’s Leading Business Men
Momentum Public Relations – Stephanie Boucher
Reading the financial section in the paper, you’ll often find that investors don’t agree on very much, with the exception of one thing: there are certain strategies to becoming a successful investor.
Many money managers and investors have made a fortune using their own philosophies, and have helped others do the same. Here, we’ve rounded up tips and tricks from a few of world’s most successful investors, suitable for the novice investor as well as for the professionals looking for new strategies.
- “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett
Warren Buffet, 79, is often considered the world’s most successful investor of all time. He has made an enormous fortune through his company Berkshire Hathaway, of which he is the largest shareholder and CEO. Buffet’s estimated worth is over $46 billion.
Warren Buffet has had the ear of many businessmen like Bill Gates and his opinions can influence the world markets. His advice to investors is when evaluating a company, pay attention to the quality of the company over the price. The company’s quality is of utmost importance, and one should expect to pay a fair price for it. Furthermore, a company of lower quality should not be bought because of its low price tag.
- “The person that turns over the most rocks wins the game. And that’s always been my philosophy.” – Peter Lynch
Peter Lynch, 71, made his fortune as the manager of the Magellan Fund early in his career. During this time, he averaged a 29.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} return, making it the best performing mutual fund in the world. Lynch is worth over $350 million.
His advice is to do the most research as possible before investing. The more you understand, the better your chance of success. Investing isn’t like playing roulette. Behind every stock is a company, and understanding that company’s business is crucial to your investment strategy. You should always have a better reason for buying stock than “It was going up!”
- “I create offbeat advice; I don’t follow it, I rarely take third-party advice on my investments.” – Mark Cuban
Mark Cuban, 57, is an investor, businessman, author and television personality. He is well known in the business world as the owner of Dallas Mavericks, and for his role as an investor on the popular TV series Shark Tank. Cuban is worth approximately $3 billion.
His strategy concerns advice coming from outside parties. According to the business mogul, he thinks it’s best to save money and invest in vehicles you know well. While advice from finance professionals can be beneficial at times, be sure to understand where your money is going and be sure that it serves your best interests. You can never do enough research.
- “My investment philosophy, generally, with exceptions, is to buy something when no one wants it.” – Carl Icahn
Carl Icahn, 79, is widely regarded as one the of world’s most famous investors. He is known for investing in companies with poor management, for which he eventually coined the phrase “Icahn lift.” The catchphrase is known on Wall Street because it describes the upward bounce in a company’s stock price after Carl Icahn has bought it.
Icahn’s philosophy is to target a company he deems to be poorly managed and whose stock price is well below market value. He accumulates enough stock to merit a position on the board of directors to have a strong say in the management of the company moving forward.
- “Do you really like a particular stock? Put 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} or so of your portfolio on it. Make the idea count. Good investment ideas should not be diversified away into meaningless oblivion.” – Bill Gross
Bill Gross is an American financial manager and founder of PIMCO (Pacific Investment Management Company). Gross ran PIMCO’s $270.0 billion Total Return Fund, but recently left to join Janus in January 2014. Gross’ worth is estimated at over $2.3 billion.
Gross’ philosophy here speaks to diversification. While a certain amount of portfolio diversification is strongly encouraged, it also diminishes your returns when one of your picks makes a big gain. Big returns are all about taking chances, based on in depth research. Don’t be afraid to invest a little more when your research points to a winning stock or company.
Turn Out the Lights on Vancouver’s Real Estate Party
Turn Out the Lights – The Party is Ending
– Momentum Public Relations –
Willie Nelson wrote the lyrics to the famous song; “turn out the lights, the party’s over. They say that all good things must end. Call it tonight; the party’s over and tomorrow starts the same old thing again.”
Many of us have had the experience of being in bar or nightclub at closing time. Typically, to encourage a quick and orderly exit of patrons, the staff will turn down the music and turn on the lights. With the absence of music and the presence of lights, the environment of the bar or club is much less compelling. Any imperfections are noticeable in the glare of florescent lights. The place and the people look far less attractive. The message is clear; it is time to move on.
An over-heated real estate market is a bit like a bar at closing time. As the lights come up, and the music fades, reality begins to seep into the collective consciousness. Things that seemed shiny and attractive quickly lose their luster. The fundamentals didn’t change at all. Better illumination just makes the facts clear.
In examining the current state of Vancouver real estate, it is hard to avoid drawing a “party’s over parallel”. Sure, when the lights are low, and the music is pounding it is easy to be caught up in the dance. Reality can be suspended for a period of time in a blur of lights and music and libations. Real estate values are equally subject to distortion, however, in the long term, they are not immune from the fundamental principles of business. To suggest otherwise is to ignore the lessons of history.
HOW DID THE MARKET GET TO THIS POINT?
Most of the factors that have contributed to the current real estate bubble in Vancouver have been well documented. Three of the most notable contributors include:
• An influx of offshore investors, most frequently associated with Asian money in search of asset diversification in a lower risk environment
• A “scarcity mentality”; investors rushing to purchase assets due to the profound belief that they will be unable to afford them later due to price escalation
• Inexpensive borrowing costs and low capital requirements
Vancouver’s attractive location, relatively moderate climate and natural beauty compounded by a limited supply of land and housing have caused the convergence of supply and demand over the past ten years to be less than optimal.
WHAT WILL HAPPEN NEXT?
We are already seeing the leading edge of some significant indicators that tell us that the party is over. The lights may not have come on yet, but the music has been turned down. The factors that were responsible for the run up in prices are precisely the same factors that are likely to carry prices in the opposite direction. Here are the new realities that we see emerging in 2016:
• There is a reduction in the number of offshore investors: Much of the new wealth in Asia has been diminished by reversals in the Chinese economy, and many wealthy individuals have considerably less equity and cash. Additionally, with the run up in values in Vancouver, a shrewd investor will be seeking out undervalued assets. When the advertised selling price of a home is more than 15 percent higher than a comparable home on the same street it begs the question; why? Likewise, when real estate values in any city are significantly elevated compared with similar properties in nearby cities investors tend to migrate to opportunities that offer a better value. Vancouver’s real estate market is priced at a premium compared to places like Seattle and San Francisco. Investors who may prefer Canadian assets are waiting to see if the top of the market has been reached, and the inevitable bursting of the bubble will bring pricing back into line.
• The “scarcity mentality” has reached its apex: The conventional wisdom that Vancouver real estate prices would continue to rise without a pause has given way to the expectation that 2016 will be a year of price softness. It isn’t a question of “if” – it is a question of “when” and “how much”. Consequently, buyers are beginning to migrate to the sidelines which will create a market imbalance with sellers outnumbering buyers. Demographics are also playing a role in the equation. An increasing number of baby boomers are looking to monetize the investment in their homes, but there is a shortage of Gen X and millennials who can purchase properties in Greater Vancouver if it means carrying mortgages of over a million dollars.
• Lenders are more cautious: Governments and banks have taken steps to tighten up regulations and the supply of money for higher priced real estate. The capital requirements have been increased for homes over a million dollars, and lending evaluations have become more rigorous to discourage speculation. Most first-line lenders are looking very carefully at affordability. If a prospective purchaser will be spending greater than 35 percent of their disposable income on principal, interest and taxes they can expect a rough ride from lenders. With personal debt levels for Canadian households now close to $1.64 per $1.00 of disposable income, applicants for larger mortgages can expect very close scrutiny of their borrowing ratio.
Vancouver’s real estate bubble is likely to burst in 2016. When the bubble bursts, how big will the mess be? Obviously, nobody knows the answer to that question. However, the attraction of the city, its accessibility and the limited supply of real estate will ensure that a downturn will be temporary. Once the inevitable correction has taken hold, the music will start to play, and the real estate party in Vancouver will begin again.
Gold Jumps on Fed Interest Rate Announcement
The FOMC Interest Rate Increase was Short on Expectations – Gold Surges
– Momentum Public Relations –
The Federal Reserve’s biggest meeting of the year was held on March 15-16, capped off by a press conference from Federal Reserve Chair Janet Yellen. In the official press release, the Federal Open Market Committee (FOMC) stated:
“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen. However, global economic and financial developments continue to pose risks. Inflation is expected to remain low in the near term, in part because of earlier declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of declines in energy and import prices dissipate and the labor market strengthens further. The Committee continues to monitor inflation developments closely.
Against this backdrop, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.”
Yellen would not rule out the possibility of an April rate hike, striking a notably cautious tone throughout her press conference. She stressed that the committee’s projections were not to be viewed as promises and were subject to change as new data became available. However, the two projected interest rate hikes for 2016 are down from the four hikes experts expected back in December.
Although the FOMC announcement was notable for investors of all types, those interested in gold were particularly enthused by the news. After posting negative returns for the past three years, 2016 has brought plenty of good news for gold investors. Seeing a 13{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} plus hike in the early months of 2016, gold dropped briefly last week before spiking immediately after the FOMC announcement.
Gold began 2016 trading at $1,078.40 USD an ounce. As of March 17, it was trading at $1,262.70 USD an ounce. Reasons for gold’s continued gains include:
- The stock market has been off to sluggish start for 2016. This prompted the rise of gold as investors started losing faith in their stocks and seeking alternative investments. Gold is well regarded as good investment for those seeking protection from global insecurities.
- A weak dollar associated with low interest rates in the United States makes dollar denominated commodities such as gold more appealing. Historically, gold prices increase whenever the value of paper currency falls.
- The Feds appear to be leaning towards higher employment at the expense of higher inflation.
If you’re interested in diversifying your investments with gold, there are four primary options to consider:
- Physical Gold: Banks sell 24 carat gold for investors, but expect to pay a premium for the 99.99{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} purity. Jewelry is often a more affordable way to invest, but don’t forget to check for purity and factor in the cost of a secure facility for safe storage.
- Gold ETFs: Offered by fund houses, gold exchange traded funds are listed on the stock market. They can be purchased and sold just like shares of stock.
- Gold Mutual Funds: Allowing investors to invest through SIPs, gold mutual funds invest in multiple gold ETFs.
- Gold Bond Schemes: Gold-denominated bonds are issued by the Reserve Bank of India (RBI) with a fee linked to current gold prices. They have a maturity date of eight years and an exit option after five years.
Although now may seem to be the perfect time to invest in gold, please keep in mind that prices will inevitably continue to fluctuate. Wait for gold to drop to the lowest possible price before it soars to get the highest return on your investment.
A Giant is Brought Down
Pharma Giant Valeant has been Brought Down
– Momentum Public Relations –
Shareholders in Valeant Pharmaceuticals (VRX) have undoubtedly had a rough year. Unfortunately, the struggling drug maker shows no signs of improvement. After losing nearly half the stock’s value in the last week, the company’s downward spiral continues.
By the close of the day on March 14, Valeant was valued at $23.6 billion. This is a dramatic drop from its value of $89.6 billion during its peak trading price in mid-August. March 15 share prices closed at $40.20, the same level as March 15, 2011. Shares had been consistently above $50 since 2012, with a high of $263.70 in August 2015.
Valeant’s biggest shareholders are feeling the pain of the company’s struggles. Pershing Square is left with about $800 million in losses from this week alone. ValueAct is down roughly $390 million.
Several factors are affecting Valeant’s stock price.
• Excessive Debt: The company is heavily in debt due a lengthy acquisitions binge, carrying over $30 billion in net debt and levered with a debt-to-equity ratio of nearly 5-to-1. They’re also at risk of defaulting on certain debts, due to a failure to file their 10-K for 2015 within the 15-day extension window required by regulators.
• Weak Growth: Multiple analysts believe Valeant’s emphasis on serial acquisitions has been camouflaging week growth. Unaudited fourth-quarter earnings were well below expectations and several drugs in the company’s portfolio aren’t living up to the company’s promises to investors. For example, a drug that claims to boost a woman’s libido, Addyi, is unlikely to hit the sales of $100 million to $115 million that the company had previously stated. Lower growth across the board is expected in Valeant’s US dermatology, gastrointestinal, and women’s health portfolios.
• Legal Trouble: Valeant’s pricing strategies have been widely criticized, leading to investigations from the US Attorney’s Office for the District of Massachusetts, the US Attorney for the Southern District of New York, and the US House Oversight Committee. Valeant is under investigation by the SEC in regards to its previous relationship with drug distributor Philidor Rx Services LLC. The Federal Trade Commission is investigating the company’s growing control of the production of rigid gas permeable contact lenses following the acquisition of Paragon Vision Service and a series of unilateral price increases in 2015.
• Employee Retention: Valeant paid out employee bonuses last week, but insiders say employee retention is a concern. The company is an exceptionally challenging place to work for, but savvy investors know Valeant can’t recover without a team of capable leaders.
Also adding to the company’s troubles was the lengthy absence of CEO Mike Pearson, who was on medical leave from last December to the first of March due to a severe case of pneumonia. Howard B. Schiller served as Valeant’s interim chief executive officer, but having the company’s leader missing in action during a time of crisis shook investor confidence. Troubles were compounded when the company was less than forthcoming about the seriousness of Pearson’s condition.
There have been rumors circulating that Valeant’s board has considered firing Pearson, but decided to keep him on to avoid paying out a $200 million severance package. Pearson insists that’s not the case, stating he’d only be entitled to a modest payment for vested stock if the board decided to replace him.
Since his return, Pearson has pledged to focus on “improving Valeant’s reporting procedures, internal controls and transparency.” However, it remains to be seen if Pearson is a strong enough leader to save Valeant from the brink of destruction.
Based in Laval, Quebec, Valeant’s subsidiaries include Bausch & Lomb, Salix Pharmaceuticals, Medicis Pharmaceutical, Solta Medical, Dendreon, OraPharma, and Obagi. Before last year’s regulatory troubles began, the company was considered to be the poster-child for the lucrative model of high-profile takeovers in the pharmaceutical industry.
Update on the Oil Crisis in Canada and Abroad
Update on the Oil Crisis in Canada and Abroad
– Momentum Public Relations –
According to financial prognosticators the recession that recently hit Canada will continue to affect Canadians; particularly those who live in Calgary and Edmonton. For instance, according to the Conference Board of Canada, Edmonton’s economy will contract by an additional 1.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in 2016, while Calgary’s economy is expected to shrink by an additional 1.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year. The continual decline in the two cities economies can be attributed to the decline in the price of oil, and the impact of the steep drop has trickled into other sectors of the economy as well.
Furthermore, job loss numbers are also expected to increase in 2016, as Calgary will suffer from an additional 2.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} loss in employment growth, bringing the overall unemployment rate to 7.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year. Alarmingly, the 7.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} unemployment rate is actually higher than the national average, a figure that Calgary has not hit since 1987. Moreover, the sectors that are expected to get hit the hardest by the steep decline in oil prices are the trade and construction industries respectively.
Residents of Edmonton will also not fare that much better, as unemployment rates are expected to hit 7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year; an almost 2 decade high. It should also be noted that the real estate market will also take a subsequent hit from the massive layoffs, as the excess of office space created by all the layoffs will discourage investments in non-residential construction as well as office buildings. De facto, pundits expect a 33{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop in housing starts in Edmonton in 2016, while Calgary can expect a housing start drop of 18{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year.
What’s more, on March 3rd, 2016, Canadian National Resources Ltd reported an 89{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop in quarterly profit ($131 million), due mainly to the steep decline in oil prices. Canadian National Resource Ltd is Canada’s second largest gas and oil producer, and the enterprise is currently projecting capital expenditures ranging from 3.5 to 3.9 billion dollars, in stark comparison to the 4.5 to 5 billion dollar range that they projected in 2015. Annual production values of oil are also expected to drop by 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year in comparison to last year, and the Calgary/Alberta based entity’s share prices dropped to 12 cents per share in Q4 2015, compared to $1.09 per share during the same period in 2014. In sum, Canadian National Resources Ltd reported that revenues fell by 36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to 2.79 billion dollars.
Moving beyond the dire economic situation currently facing Edmonton and Calgary, airplane manufacturing is also expected to take a severe hit from declining oil prices. For instance, airplane retirements for Boeing and Airbus fell to only 28 in Q1 of 2016, compared to 104 in Q1 of 2015. In other words, the decline in oil prices has led to a reduction in demand for more energy efficient aircrafts, because they are currently not seen as a priority from a cost perspective.
Globally, the latest numbers indicate that over one million barrels are being oversupplied every day. That is, the oversupply is being caused by the fact that there are insufficient storage areas to store oil. In fact, the situation has become so dire that some experts are suggesting that pumped oil be stored in swimming pools due to insufficient storage spaces. In addition, oil tankers are also being sent on longer voyages to help reduce tanker pile up debacles at junction ports, as 50 oil tankers are currently remaining stationary in the port of Rotterdam, which is the highest figure being reported since 2009. A similar situation is currently taking place in the United States’ largest oil hub, which is based in Cushing, Oklahoma.
The marked drop in crude oil prices has also forced ExxonMobil to cut its capital spending to only 23 billion this year; a 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop from the previous year. Russia has also been hit hard by the oil crisis, as the country is currently trying to recover from its own recession. In fact, automotive sales dropped by 36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} last year, and massive layoffs in plants like the Avtovaz plant in Tolyatti have forced many workers to leave their homes and move in with their parents to make ends meet.
Unfortunately, the global oil crisis is expected to get worse in the future, as many experts believe that the increase in the adoption rates of electric cars will further reduce the demand for gas guzzling vehicles. To learn more about how electric cars can exacerbate the oil crisis please visit here.
- Published in Blog, Business, Energy, Oil and Gas
Kevin O’Leary says Canadian Stocks are a Good Buy
Kevin O’Leary Shows His Patriotism by Advocating Investment in Canadian Stocks
– Momentum Public Relations –
Kevin O’Leary, co-founder and chairman of O’Leary Funds, is one of Canada’s most respected investors and financial commentators. He came from humble middle class beginnings, but built a company which he sold for more than $4 billion dollars. O’Leary has long shunned the Toronto Stock Exchange in favor of the more diversified S&P 500, but it appears he has suddenly gotten in touch with his patriotic side.
O’Leary is the father of two children, Savannah, 22, and Trevor, 19. He’s always been open with his kids about money, offering regular advice on financial responsibility as well as sound investment tips. His most recent tip was for both his son and daughter to keep 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of their portfolios in Canadian stocks and 60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in dividend paying S&P with 10 sectors of diversification. If you’re looking for the right mix of investments in your Tax Free Savings Account, O’Leary advises you to do the same.
In the February 12 episode of Ask O’Leary on BNN, O’Leary told a caller, “The TSX has been crushed because of the energy and energy service sector. I think we’re getting near the eighth or ninth inning of that decline. I’m very bullish should we get our acts together. In other words, hopefully there will be a pipeline announcement in the near future.”
Describing himself as an optimist, O’Leary called Canada a “good buy” for savvy investors at the moment. However, he advised the caller to wait a few weeks until the budget comes out. If the government issues a budget with a deficit of over $30 billion, O’Leary says he’ll withdraw with advice and personally exit Canada in terms of investments. Claiming an added budget deficit would be proof the government doesn’t know what it’s doing, O’Leary said he wanted to wait and see what lawmakers would do before speculating further.
This tidbit was only one of several interesting investment tips O’Leary has offered in the last month. Highlights from recent episodes of Ask O’Leary include:
- O’Leary publicly praised Canadian banks by saying Canada’s intense fiscal regulations made for tightly managed financial institutions, offering extra protection for investors. In fact, he went as far to call them the “best managed financial institutions on the globe” in today’s economy.
- When asked what advice he’d offer for investors debating the merits of Canadian banks versus American banks, O’Leary recommended callers stick to Canadian banks after pointing out the unfavorable nature of the currency conversion. The Canadian dollar closed at 71.77 cents on February 10, a substantial drop from its high of 105.95 in July 2011. Yet, O’Leary remains convinced the loonie is near the end of its struggle and will eventually bounce back stronger than ever.
- For those interested in investing in rental properties, O’Leary said the best investment is pay down the mortgage on the property as soon as possible. Using the income to reduce the debt guarantees increasing returns on the building as the debt gets paid off. Relaying a story about an immigrant couple who only ate pasta while struggling to pay off their first investment property mortgage, he told the caller, “Get rid of debt so you don’t have to eat beans.”
O’Leary has also been in the news due to his recent announcement that he is interested in running for the leadership of the Conservative Party of Canada. Stating that he had been inspired by Donald Trump’s campaign for President in the United States, O’Leary created further political controversy when he offered to invest $1 million in the economy of Alberta in exchange for Premier Rachel Notley’s resignation.