Archive for September, 2008

It’s Official — I’m at BNET Now

September 5, 2008

It’s not much of a secret, but for form’s sake here’s the press release: I am now the Pharma Insights writer at BNET. Check it out. It’s really quite good. We carry all of Reuters’ drug news, and all of Seeking Alpha’s pharmaceutical items. Plus, of course, my own commentary on the biz.

I’ll keep this blog active, but just barely. It will be reserved for more offbeat stuff, the kind of thing that one’s employer tends not to appreciate.

Those of you on my spam list will continue to receive updates when I post on BNET. The usual rules apply: If you want off, just say so. I have no desire to clog up your Blackberry with unrequited link-love.

Readers: Use my email address. I’m interested in ALL types of drug news. The good, the bad, the ugly. Let’s talk! I answer all emails, as long as they’re pharma-related. Think I’m wrong? Let me know. Need a correction? Let me know. Praise … I live in hope!

I hope BNET Pharma will become a regular bookmark for you, something you read when you’re eating lunch at your desk. But it can also be a conversation — I’m happy to keep everything in confidence. All I want to do is write about the pharmaceutical business in an entertaining, intelligent, and well-informed way. I’d love to hear from you. Thanks for reading.

Jim

Cuts at Abbott Seem to Be Doing Their Job …

September 2, 2008

Over at my other gig, I recently wrote an analysis of Abbott Labs. Buried in that piece, I said:

Abbott is one of the few companies whose sales and marketing divisions are actually becoming more efficient. Its SG&A dollars generated $3.56 in revenues for every dollar spent last quarter, up slightly from $3.55 a year ago. That’s one of the highest ratios in the business.

It’s true, I’ve finally found a company that seems to be getting more, not less, out of its marketing dollars. Here’s a couple of charts that graph the ratio of SG&A to revenues and gross profits. The second chart shows the growth rate in that ratio. As you can see, both sets of lines are drifting gently upward, unlike every other company I’ve looked at this quarter.

For examples of companies that have somehow not gotten their marketing expenses under control, see my previous chapters on: