Aralez: A Quick Overview Of The Investment Thesis

  • Aralez has multiple revenue generating products.
  • It also has a huge debt and a cash flow problem.
  • Weighing both the pros and cons, this looks like a cautious investment with a small stake to begin with.

By S. Mitra, MBA (ISB)

Almost the entire Aralez Pharmaceuticals (ARLZ) investment thesis is based on the past performance of its key management, specifically the prowess CEO Adrian Adams as previously demonstrated in his ability to sell off companies for billions of dollars. If this was a different CEO, I wouldn’t touch this debt-ridden company with a problem-ridden pipeline even with a long barge pole. But the question is: just because the CEO did it before, can he do it again?

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