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Shankar AVSB on LinkedIn

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"The Essence of Gita" book by Shankar AVSB

Jupiter Futures

S&P500 Futures Trading Signals

S&P500 Emini Futures Trading 

Green Earth Blockchain

Kaafila Metaverse Project - for Virtual Learning and Virtual Working

MyOrbit -Online Business Resources

Americaweb.org - America Business Resources

7Avenues Enterprises

Big India Farms (BIF)

India Equity Investment Opportunities

Warburg Pincus buys Bausch & Lomb for $4.5bn

Warburg Pincus has added to its healthcare portfolio with a $4.5 billion deal to buy Bausch & Lomb - best known for its line of contact lenses; the company also markets a line of pharmaceuticals used to treat eye conditions. Bausch & Lomb can continue to look at other offers, but would have to pay Warburg Pincus a $40 million breakup fee if the company decides to take another bid.


That may be less likely, as Bausch & Lomb has 344 product liability suits, related to the massive worldwide recall a year earlier of its ReNu with MoistureLoc lens solution after the solution was linked to a fungal infection of the cornea, Fusarium keratitis. Earlier this year it announced a limited recall of its ReNu MultiPlus contact lens solution. So a fair amount of healthcare execution challenge is there.

Warburg Pincus paid about 25% premium on the '30 day-volume weighted-average share price' before the speculation of this deal came out in press.



The agreement continues a relatively newer trend in private equity deals - which is to go for higher risk/turnaround companies.

• Just earlier this week on Monday, private-equity firm Cerberus Capital Management agreed to pay $7.4 billion for an 80% stake in the Chrysler Group. full story.
• Triad Hospitals Inc. was taken private for $6.4 billion in Feb 2007. full story.
• Hospital operator HCA Inc. was bought last year in a massive $33 billion deal. full story.

Wal-Mart plans 2000 retail clinics

When Wal-Mart throws its weight behind a concept, it has a high chance for success. So champions and supporters of their retail clinic concept will be pleased to hear that Wal-Mart plans to launch 2000 clinics in its stores over the next five to seven years, giving a significant boost to the still-emerging primary care model. Wal-Mart isn't planning to go into the healthcare business directly, however; it expects to keep contracting with providers, who will lease space in the stores.

The retail chain has been in the clinic business since 2005 and has already launched 76 walk-in clinics in 12 states. These clinics have been a success, at least from a public relations perspective. Wal-Mart CEO describes the clinics as "a great opportunity for our business," but also stressed that the clinics could improve access to care. The move follows Wal-Mart's recent $4 generics campaign that received huge publicity despite the program's sharp limits on the drugs it offered. The summary was reported by Fierce Newsletter, and this United Press International article has more details.

The same concept can be applied by retail chains in other countries too. For example, 7to9 Retail Stores, which is a portfolio company of 7Avenues, the company which I am involved in, has also been considering such a move because it makes the value of the retail store by increasing its contribution to the local community.

Vonage in serious trouble...

As as VOIP enthusiast, and as a Vonage customer, I have been following the Vonage vs Verizon case with curiosity, and anxiety. Breaking news for today is that Vonage CEO Michael Snyder has resigned. Chairman Jeffrey Citron is the interim CEO.

Vonage also presented its results for the quarter ended March 31, 2007:
-- Total Revenue (in millions): $195
-- Gross Subscriber Line Additions: 332,000
-- Net Subscriber Line Additions: 166,000
-- Average Monthly Customer Churn: 2.4%
-- Marketing Cost per Gross Subscriber Line Addition: $275

In phone call with analysts this morning, Citron said that Vonage would cut its marketing expense of $275 per new customer acquired. FierceVOIP magazine thinks the above is "actually $31 better than it had been in the previous quarter."

But I am really surprised by the $275 number there. I am not an industry expert in VOIP, and I probably don't need to be one to ask this question: Why is it not around $50 or $100 at max, which will put it more in line with % marketing expense of internet technologies?

I haven't got the customer mix (business vs home) handy, but I do often see a Vonage leaflet in London's Financial Times, and then some online ads and campaigns...but still $275 looks big! I am now very curious to know what marketing channels Vonage is using for a product like VOIP.

Let's see where Citron cuts the marketing expenses...he won't need to search much! We will follow this story.

On a slightly separate note, their service and support has been great though...and full marks on that aspect.

New Media and You

Hi, here are 5 quick questions that will take less than 60 seconds, and it will be a great help to validate some of the business planning. Thanks for coming by.

Growing Heart Valves From Stem Cells

New developments in the field of bioengineering are happening rapidly - and while doing my weekly scan of updates I came across this innovation yesterday. Prof. Magdi Yacoub, a professor of cardiac surgery at Imperial College London and working with the Harefield Heart Science Centre, has talked about their latest research work – that has grown 3 centimeter wide valves by exposing stem cells to chemicals, which spurred their differentiation into heart valve cells. The tissue was grown on a scaffold of collagen.

He said that artificial valves are already widely used, but an organic replacement has advantages, because it can adjust its shape and size in response to changes in the circulatory system, unlike an artificial valve, "which will just open and shut." In addition, a stem cell cardiac valve is less likely to be rejected. A report on the work is expected to be published in August in the Philosophical Transactions of the Royal Society. I will keep a track of it.

Similar work is happening in other places, including at University of Michigan Medical School. The journal Regenerative Medicine says we're drawing steadily closer to "bioengineering" entire areas of the heart, as well as heart valves and major blood vessels. Release

Thanks for Responding

Thanks for Responding to the New Media Usage questionnaire. I will mail you a copy of the consolidated response along with a few insights in a couple of weeks.

who will win this $20 billion project?

The U.S. government will announce this month the carrier it has selected to supply voice, data, video and wireless services through 2017. The $20 billion project, called Networx, is split into two contracts: (1) Networx Universal includes VPN, VoIP, frame relay and ATM services, and (2) Networx Enterprise which will focus on emerging IP and wireless services. The US GSA (General Services Administration), which is the govt agency overseeing the project, will announce the winner of Networx Universal this month and the Enterprise component winner in May. Here are the bidders for Networx Universal (essentially, the telecom market...and it couldn't be any other way):

• AT&T, with Bechtel, Cingular Wireless, Electronic Data Systems, Global Crossing, GTSI, Northrop Grumman and SRA International.
• Qwest, with Akamai Technologies, Alcatel-Lucent, Bearing Point, Hawaiian Telecom Services, Science Applications International and Wire One Communications.
• Sprint Nextel, with Hughes Network Systems, Intercall and Lockheed Martin.
• Verizon Business, with Comtech Telecommunications, G2 Satellite Solutions, HP, Proxim Wireless Networks, WilTel Communications/Level 3 and Verizon Wireless.

Those same teams are bidding for the enterprise contract, but an additional team led by Level 3 is also bidding for it. For more on Networx, read this article from Wireless Week.

What's going to happen? Level 3 doing their own show for Networx Enterprise could make their team weaker for it. It is very likely that (1) and (2) will go two different teams. The execution risk of going with one combination alone is high, plus the added benefit is that if two teams are chosen, almost half the telecom industry will be working with each other on this project, allowing GSA a strong control on evolving telecom standards.

Who's likely to win Networx Universal? While all teams are technically covered, the AT&T team has EDS, which has speciality in doing such ultra long-term projects, with both good and bad results. And there is Northrop Grumman to counter Lockheed Martin. So this team looks most attractive. Time will tell.

But whichever companies win, they will have to help the various agencies make the transition from one provider to another, a process that was difficult when the government last bid its telecom work for FTS 2001. Such a transition will never be painless, and the extent of effort planned in this giant transition could make some proposals more expensive and pragmatic than others, but less attractive financially. We will see what the GSA decides for itself.