Blue Orca Capital Tweets "We are short $FMC because it concealed from investors that recent legal defeats have enabled competitors to sell generics up to 80% below the price of FMC's flagship insecticide...." (Report In Body)
Portfolio Pulse from Happy Mohamed
Blue Orca Capital has shorted FMC Corporation due to the company's alleged concealment of legal defeats that have allowed competitors to sell generic versions of FMC's flagship insecticide at significantly lower prices. FMC, an agricultural chemical manufacturer, has claimed that it will not face generic competition until 2026 due to its process patents. However, Blue Orca's investigation found that generic versions of FMC's top-selling insecticide are already being sold in key markets like India and China. The report also highlights FMC's increasing balance of receivables, customer defaults, and bankruptcies, and the company's decision to factor receivables at increasingly punitive rates.
September 07, 2023 | 1:51 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
FMC Corporation is facing potential financial difficulties due to the emergence of generic competitors and legal defeats. The company's revenues, margins, and cash flows are expected to decline.
FMC Corporation has allegedly concealed legal defeats that have allowed competitors to sell generic versions of its flagship insecticide at significantly lower prices. This, coupled with the company's increasing balance of receivables, customer defaults, and bankruptcies, and its decision to factor receivables at increasingly punitive rates, is expected to negatively impact the company's financial stability.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100