The commentary was extremely pessimistic from management this quarter. A complete turnaround from last quarter or last few years. It was almost a Sequent Deja-vu.
All brand value, customer trust and doctor preferences narratives were broken amid pathetic volumes. Suddenly new entrants have become competitive despite being unable to maintain margins, raising prices etc. and are eating organised market share instead of unorganised.
Diagnostic narrative of 15%+ growth, huge unorganised mkt share, organised going after only & only unorganised, packaged tests yada yada are in dust at least for this business. Need to hear peer commentary to cross verify.
Posted above so it’s available in journey thread of this business and we have something to reflect back on in future.
I will still wait for 1-3 quarters more to understand if this business has really lost it’s mojo.
Disc: Invested and evaluating. At this rate, slower ( not 15%) growing branded generics look a better option. Still diagnostics were always a proxy play from so many angles.
https://www.youtube.com/embed/YQefcujsN9g
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