Vioxx sales were way down this quarter, but the company says that was the result of wholesalers buying up supplies infront of a price increase. (For the year, sales of Vioxx are up 8%.) Worse, Zocor will face competition from cheap generic versions in 2006.
Phooey, says Mr Sirower, who notes that when executives play the acquisition game, they pay, in addition to the current market price, an up-front premium for a stream of payoffs sometime in the future.
There is no question that the up-front ticket price is the most important consideration today in China, not the cost per kilometer over the life of the vehicle.