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PDRX - PD-Rx Pharmaceuticals


orion

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I´ve seen a discussion about PDRX here before but i think this little company deserves its own thread.  For a nice overview and a great write up, I would recommend the post on the Alpha Vulture blog http://alphavulture.com/2013/11/04/pd-rx-pharmaceuticals-obvious-cheap/

 

The company is quite cheap and should appear even cheaper when they release their 2013 report. What especially grabbed my attention was a comment made by one of the readers of the above blog. Stating that one of PDRX´s largest competitors was shut down by the owner. But not because they were unprofitable but because this company caused concers with customers in other parts of the larger holding company.

 

So in the end this could be positive for PDRX.

 

Any opinions?

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Definitely cheap. Another idea I poached from the board. Thanks to Nate or whoever originally mentioned this one a little while ago.

 

Has anyone received their annual report? Expected to by now because the date on the 2012 one was November 2. Figure they send this out before posting on their website.

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  • 2 weeks later...

Hi,

 

Earlier this summer I sent emails to the COO Jack McCall, and did not get a response.  I then sent letters to a list of owners from an old filing from the early 2000's I found, mainly Management and family of Management, trying to get them to buy back shares.  I had no luck with that either.  I did hear that someone has has had some good contact with Mr. McCall, so if you are out there, I would love to hear what you did differently than I did to start a constructive dialog. 

 

The big question for me is what they are going to do with all the cash?  If margins came up a bit too, that would be nice too.  I will post if I get the report in the mail. 

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  • 4 weeks later...

I suspect that the share repurchase is from an employee that left or something like that since I don't think there was enough trading volume to buy that on the open market. I do think the share repurchase is good news, but I don't directly think this will be a recurring event nor do I think this implies anything (positive or negative) about the capital allocation skills of the management team.

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I suspect that the share repurchase is from an employee that left or something like that since I don't think there was enough trading volume to buy that on the open market. I do think the share repurchase is good news, but I don't directly think this will be a recurring event nor do I think this implies anything (positive or negative) about the capital allocation skills of the management team.

 

Yes, that sounds right to me.  They put a lot more effort into the report this year, which taken by itself doesn't matter, but hopefully it means that they are going to spend more time on getting the share price more in line with the companies value.  Why they don't take it private is a mystery to me.

 

Happy New Year.

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Anyone have any thoughts or concerns about the jump in accounts receivable?

 

 

They attributed it in the letter to an investment in a project, which is something less-capitalized competitors can't do.

 

 

Can anyone explain to me the changes in the company's COGS and SGA since 2008?  Gross margins have gone way up but so have operating expenses, leading to similar net profit margins overall.

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  • 7 months later...

No clue. Obviously disclosure is very limited. Good thing is you don't really have to care at 3x EV/EBIT :) . The number is probably even better given that we're 14 months ahead of the latest report. Also the cash balance is not that impressive imho - I can imagine they want to keep 1 or 2 million in cash so we're talking 2 / 3 years of earnings.

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  • 3 months later...

Looks like they bought 49,424 shares of stock back during the fiscal year.

Net book value increased from 4.71 to 5.91

they also reduced their current liabilities quite a bit

I wonder why it took so long to do the audit? (6-30 to 11-5) (this is the old auditor in me, asking

 

 

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  • 11 months later...
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Not good?

 

http://www.business-standard.com/article/pti-stories/wockhardt-tanks-15-on-issues-over-shendra-plant-drug-recall-116011500742_1.html

 

Wockhardt shares today slumped 15 per cent after the USFDA made nine 'observations' highlighting violations of its norms at the drug maker's new facility at Shendra in Aurangabad and recall of 62,555 bottles of its antibiotic tablets by PD-Rx Pharmaceuticals in the US market.

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This recall seems to have started last year, so hopefully was the main cause of "the loss of market demand" they discussed in the annual though that would be a strange way to describe this situation (which makes me think that this is extrememly wishful thinking on my part).  Either way, the lack of information the company discloses does make it somewhat challenging to follow. 

 

http://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/62500-bottles-of-wockhardts-antibiotic-tablets-recalled-in-us/articleshow/50581216.cms

 

This nationwide Class II recall is on account of "the original manufacturer's recall, in which the firm did not adequately investigate customer complaints," the United States Food and Drug Administration (USFDA) said in its latest Enforcement Report.

 

The tablets are in the strengths of 250 mg (45,022 bottles) and 500 mg (17,533 bottles), it added.

 

As per the report, the voluntary recall initiated on April 29, 2015 is ongoing.

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