Leading specialty injectables and infusion pump manufacturer Hospira (NYSE: HSP )
has suffered greatly from largely self-inflicted wounds over the past
couple of years. A lackadaisical approach to proper plant management has
led to numerous FDA warning letters at key plants and a shipment freeze
on the company's pumps. Yet, Hospira remains the largest player in an
industry that has attractive gross margins, significant barriers to
entry, and frequent supply shortages.
Hospira seems to be on the road back, and seems to be taking
seriously both the need to comply with the FDA regulations and the need
to augment its long-term growth potential. The problem is that it looks
like Wall Street is already many steps down that road in terms of
rewarding the company with a robust valuation.
Follow this link to the full article:
Even With Growth Opportunities Ahead, Is Hospira Overvalued?
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