Replies to post #148986 on Biotech Values

[DewDiligence]

Re: Webcast/CC cancellations

In 2003, Fred Hassan, the CEO of Schering-Plough, canceled a CC with investors for “personal reasons.” The CC was to discuss some serious shortcomings in the company’s business model, and none of the analysts on the call (which was hosted by know-nothing IR staffers) believed Hassan’s excuse for not showing:

http://www.nytimes.com/2003/08/22/business/schering-plough-details-its-steps-for-a-turnaround.html

…Mr. Hassan skipped an evening conference call with analysts to discuss the moves, infuriating some analysts.

''The question really is, 'Where's Fred?' '' asked Tony Butler, an analyst for Lehman Brothers. ''Here, when a bad piece of news needs to be released, quite frankly he goes and hides.''

Mr. Butler's comments were echoed by Barbara Ryan, an analyst for Deutsche Bank. ''We all recognize these things didn't happen on Fred's watch; this is Fred's watch,'' she said. ''I think it damages his credibility'' to be absent from the conference call.

Staff members were left to answer analysts' questions, and they said Mr. Hassan had a previous commitment.

As it turns out, Hassan really did have a personal reason for not attending; he was attending a prescheduled family function.