|Bid||44.31 x 94900|
|Ask||44.53 x 66100|
|Day's range||43.69 - 45.65|
|52-week range||20.98 - 392.30|
|Beta (3Y monthly)||1.02|
|PE ratio (TTM)||1.30|
|Earnings date||31 Jul 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||2.98|
Even the best investor on earth makes unsuccessful investments. But serious investors should think long and hard about...
(Bloomberg Opinion) -- Reckitt Benckiser Group Plc has appointed Laxman Narasimhan as its new chief executive officer, succeeding Rakesh Kapoor. An outsider should herald a fresh start for a group that was once a superstar, but has more recently become a laggard.Reckitt has eschewed some of the obvious candidates for the role, such as Tesco Plc’s Dave Lewis or Unilever’s Nitin Paranjpe. It has instead chosen Narasimhan, who joins from PepsiCo Inc., where he was global chief commercial officer.He’s an unknown quantity outside of the U.S. He had a career spanning almost 20 years at McKinsey, before moving to Pepsi. While he was well-regarded there, its change of CEO might have left him as one of the senior executives who missed out on the top job and was therefore looking for opportunities outside of the soft drinks maker.And Reckitt has some particular challenges. It has endured a tumultuous few years, following the $16.6 billion acquisition of Mead Johnson in 2017.Narasimhan should at least bring a burst energy to the group. Kapoor was increasingly worn down by Reckitt’s problems.The first task of the incoming leader is to revive sales expansion, which has stalled. He must also complete the integration of Mead Johnson. It did seem as if it was improving, but hit another bump in the road last year, in the form of disruption to a plant in the Netherlands. Not having been involved in the purchase, Narasimhan can take an impartial view on the best way to tackle what increasingly looks like the wrong deal to have done.Narasimhan must both fit in with Reckitt’s culture, and evolve it. It has a particular hard-driving approach, where cost-cutting to bolster margins is at the forefront. That has gone out of fashion with investors, who want a better balance between top line and bottom line growth. The new CEO will have more scope to warn that margins must come down to facilitate the investment needed to turbocharge sales.Kapoor reorganized Reckitt into two divisions: one focused on household products, such as Cillit Bang cleaner, and the other on consumer health treatments including Nurofen painkillers. As well as being CEO, Narasimhan will directly lead the health arm.But the outgoing CEO hadn't yet taken that to its logical conclusion: separating the two units, possibly through a sale of hygiene and home. While Kapoor had earmarked this as a job for mid-2020, it will fall to his successor to complete the task.A split is not a given: new leaders don’t usually like to take an ax to their empires. There is also a question mark over whether Narasimhan can break up the group, even if he wanted to.As my colleague Chris Hughes has argued, this reinvention could be hampered by the aftershocks from the Justice Department’s indictment of Indivior Plc, the pharma business Reckitt spun off back in 2014. The drugmaker faces a $3 billion fine after U.S. prosecutors alleged it lied about the dangers of its opioid addiction treatment.That Narisimhan didn’t have any hand in the Indivior spin off means he has no baggage associated with the original deal, which would impede finding a solution. Having been based in the U.S., he should also have experience of dealing with regulators there.Indeed, this underlines the benefit of appointing an outsider – to both the company and the broader European consumer goods sector – he has much more latitude to take the difficult decisions that Reckitt needs to regain its stellar status.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Reckitt Benckiser is working to resolve both its search for a new chief executive and its position relating to U.S. charges of wrongdoing at a former business, its chairman told investors at its annual general meeting on Thursday. The maker of Lysol cleaners and Durex condoms is "well under way with a comprehensive process" to select a successor to Chief Executive Rakesh Kapoor, Chairman Christopher Sinclair said at the meeting in London. "I'm hopeful that in the not-too-distant future, we'll have something significant to report here," Sinclair said.
Perseris, launched in the United States in February, is approved by the FDA for the treatment of schizophrenia in adults. The drug delivers its active ingredient, risperidone, in an extended-release delivery system with no loading doses or oral supplementation recommended. Indivior, which gets most of its revenue from Suboxone in the United States, was indicted last month for illegal marketing of Suboxone in the U.S. and was fined $3 billion.
The U.S. Supreme Court earlier this year cleared the way for market access to cheaper alternatives to Indivior's blockbuster opioid addiction treatment Suboxone film, a move which the company itself said could result in the rapid loss of market share. The British based company, which reported revenue of over $1 billion (£766 million) last year - generated largely from the U.S. - said on Thursday it expects 2019 net revenue to fall to between $525 million and $575 million this year. Sales in the U.S., rose despite generic competition.
Reckitt Benckiser Group reported lower-than-expected first-quarter sales, due to weakness in its health business, but stood by its full-year forecast, relying on an improvement as the year goes on. Like-for-like sales rose 3 percent in Reckitt's hygiene and home business, but were flat in health as a 5 percent rise in infant formula was offset by a 9 percent drop in over-the-counter medicines.
I think there’s a strong case to buy shares of Reckitt Benckiser Group plc (LON: RB) with good growth prospects, despite its legal challenges.
London's main index rose on Tuesday as Asia-focused financial stocks and miners hailed upbeat data from China, while mid-cap builder Galliford tanked to a near seven-year low after warning on profit. The FTSE 100 and the FTSE 250 were up 0.2 percent by 0721 GMT, ahead of unemployment data.
The blue-chip index ended a lacklustre session about flat, lagging its European peers, while the FTSE 250 held on to its six-month high with a 0.5 percent rise as a stronger pound also aided. The pound's gains followed upbeat comments from Britain's foreign minister Jeremy Hunt on talks between the government and the opposition Labour Party to find a consensus over Brexit.
The consumer good group’s strategy now looks to be a hostage to U.S. lawyers. Under outgoing CEO Rakesh Kapoor, Reckitt had been simplifying and refocusing its portfolio. This effort was expected to culminate in the division of the business into two separate companies: one focused on household products such as Cillit Bang cleaner and Finish dishwasher tabs, the other on consumer health treatments like Nurofen painkillers and Gaviscon heartburn tablets.
In an indictment Tuesday, prosecutors allege Indivior deceived healthcare providers by claiming the film version of Suboxone was less addictive than the tablet form and other available drugs on the market, and then illegally reaped billions by pushing prescriptions. Indivior’s term loan that matures in 2022 was quoted with a bid as low as 84 cents on the dollar on Wednesday, before being quoted higher at 90-94 on Thursday, according to sources. The term loan currently has US$243m outstanding, according to Indivior’s most recent annual earnings review published last month.
The FTSE 100 was down 0.1 percent, with losses led by several stocks trading ex-dividend, while the FTSE 250 added 0.7 percent. Dublin's main index, considered a measure of Brexit sentiment, jumped 0.6 percent. The European Union granted Britain a six-month extension to leave the bloc, averting a disorderly exit on Friday and giving Prime Minister Theresa May more time to break the Brexit deadlock at home.
Fears of a global economic slowdown and uncertainty over trade policies kept Britain's main share index subdued as miners were tugged lower, but UK-focused stocks rallied after a second Brexit delay as ...
In an indictment in federal court in Abingdon, Virginia, a grand jury said Indivior made billions of dollars by deceiving doctors and healthcare benefit programs into believing its Suboxone Film version was safer and less susceptible to abuse than similar drugs. The indictment charged Indivior and its subsidiary Indivior Inc with conspiracy, health care fraud, mail fraud and wire fraud. If the company is convicted, the U.S. government would seek forfeiture of at least $3 billion from Indivior, the indictment said.
Britain's top share index slipped on Thursday as risks of a global economic slowdown dragged mining shares lower and insurers fell on ex-dividend trading, while housebuilders and airlines gained after ...
Shares in pharmaceutical business Indivior have fallen by 72% on news that it has been indicted in the US. The company, which trades on the FTSE 250 and is based in Slough, is accused of engaging in an illegal scheme to boost prescriptions of its opioid addiction treatment. The treatment, called suboxone film, was approved by the US Food and Drug Administration in 2010 and used by people recovering from opioid dependency.
European shares rose slightly on Wednesday as gains across most sectors offset losses among lenders, which were hit by a lack of detail in European Central Bank (ECB) comments after the bank left borrowing costs unchanged. The ECB's decision on rates matched investors' expectations but President Mario Draghi's comments shed very little light on reported plans for a tiered deposit rate and a new round of ultra-cheap bank loans.