CELG - Scratching Its Acquisition Itch Is Costing Amgen $2 Billion
Introduction
Many years ago I published an article on Seeking Alpha detailing how Valeant Pharmaceuticals was hoodwinking investors by substituting acquisitions for R&D and pretending this was costless by presenting pro-forma financials that ignored the substantial costs associated with the amortization of intangibles. A few acquisitions later, other short-sellers and the press started making similar rumblings, with the New York Times calling its figures "ersatz results".
Although the stocks of serial acquirers like the now renamed Bausch Health (BHC), Endo International (ENDP) and Allergan (AGN) have tanked,