Moderated By: Asymmetric -- (Not Moderated) -- Started: 5/15/1996 6:55:00 AM Revision History
Corning Inc announced yesterday they were spinning off their clinical labs and pharmaceutical services divisions to shareholders, of which I am now one (as of yesterday) !!! In a Wall St Journal article an analyst valued the breakup at $50 a share, with Corning the main unit alone worth the present price of the stock (about $36). Corning itself, besides making stuff that sits on your stove-top cooking your dinner, also makes specialty materials and is also in the fiber-optic (after all it's made of glass too!) and communications business. The pharmaceuticals division will compete with the likes of Clinitrials, and Quintiles both of which sell for PE's in the 40s and 50s (!!!!), because they help test and develop new drugs for the pharmaceutical companies. And guess what? Their division is
bigger and takes in more revenue than either Quintiles or Clinitrials!!!! And it's a heck of a growth
area with all the new stuff in coming out of all the biotech labs, etc. And the trend in the industry
to outsourcing. And last but not least is their lab division. So take a look, and tell me what you
think!!! |
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