Replies to post #64004 on Biotech Values

[fudoo]

I don't follow your logic - it did create value for heparin producers in the aggregate.

A product which is valuation neutral to one company may be valuation accretive to another company. AND the value of any given space should increase as the production and distribution are either rationalized or aggregated to fewer parties in the space. Think less competition, more pricing power even if all other factors remain constant. Think fewer competitors, less sales and marketing expense. Think an increased number of Heparin experts on the street in Illinois, less wage inflation pressure.

Many divestitures are predicated on this premise, ie valuation acrretive to both companies, ie more efficient use of capital on behalf of both companies.

The exiting of Baxter from the heparin space decreased the number of potential buyers of feedstock ingredients (diminished power to the sellers of feedstocks) and decreased the number of heparin suppliers (increased pricing power of the remaining finished heparin companies). Thus, the heparin space became more valuable when a major player like Baxter exited - pretty simple economics that are at work in numerous companies discussed on this board.

[rkrw]

Golden parachute put into place 2 weeks ago!

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549




FORM 8-K




CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): June 27, 2008

APP PHARMACEUTICALS, INC.

(Exact name of Registrant as Specified in its Charter)




Delaware 0-33407 30-0431736
(State or Other Jurisdiction

of Incorporation)
(Commission File

Number)
(IRS Employer

Identification No.)


1501 East Woodfield Road, Suite 300 East, Schaumburg, IL 60173
(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: [phone]

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))









--------------------------------------------------------------------------------
ITEM 5.02(e) Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On June 27, 2008, the compensation committee of the board of directors of APP Pharmaceuticals, Inc. (the “Company”) approved increases to certain of the Company’s executive officers as follows:




Name and Title
2008
Base Salary
Thomas Silberg, President
$ 600,000
Frank Harmon, Executive Vice President, Chief Operations Officer
$ 393,750

The compensation committee also adjusted the 2008 bonus target for Thomas Silberg to 50% of his 2008 base salary.

In addition on June 27, 2008, the compensation committee approved retention agreements with each of Thomas Silberg, Frank Harmon and Richard Maroun. Under the terms of these retention agreements, such persons would receive a severance payment in event that his employment is terminated for certain reasons within two (2) years following a change of control of the Company, and (i) his base salary is reduced other than as applied to other similarly situated employees, or (ii) he is required to be based outside of 50 miles from Schaumburg, Illinois or Los Angeles, California without his consent, or (iii) his employment is terminated by the Company other than for cause, disability or death.



--------------------------------------------------------------------------------

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




APP PHARMACEUTICALS, INC.

By: /s/ Richard Maroun
Richard Maroun

Chief Administrative Officer and General Counsel