Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

WILLIAM RANSOM - The Champion gets it spot on

Following on from last week’s news of a product recall (Investor’s Champion, 7th Dec 2007, ‘It’s a bad announcement but perhaps not as bad as all that and a business that’s been around for over 100 years with some decent products and great cash generation definitely justifies some attention!’) William Ransom, the UK’s oldest pharmaceutical company, well and truly silenced the critics this week.

The Medicine and Healthcare products Regulatory Agency (‘MHRA’) has now concluded that a voluntary recall of all products containing purified water from the Company's pharmaceutical contract manufacturing facility at Witham, Essex is no longer required. As a result, the Company's brands Radian, Valderma and Pavacol are not subject to recall.

The group has also learned that the MHRA is close to concluding its review of all of the other products manufactured using purified water at the facility and it is expected that a significant majority of these products will not be subject to recall.

The MHRA will also commit to an early re-inspection of the facility with a view to re-instating the Manufacturer's Licence well within the three month deadline originally imposed.

Following this news The Champion feels it is highly appropriate to repeat the closing statement made in Friday’s commentary:

‘Who knows, come next week the good old MHRA may have been swayed by scientific evidence that no threat is posed to the public by the company’s failures and therefore they shouldn’t be punished as severely as is currently the case. Watch those shares move if this happens.

Furthermore, there is a strong likelihood that the insurance policy might pick up the tab for some of the problems.

Definitely worth looking at!’

Picture the scene of The Champion revelling in this short term success!

Investor's Champion is a registered trade mark of Investors Champion Ltd.  Investor’s Champion Limited is a company registered in England and Wales under number 03577867 whose registered office is at Langwood House, 63-81 High Street, Rickmansworth, Herts WD3 1EQ. Investor’s Champion Ltd is associated with Fundamental Asset Limited who is authorised and regulated by the Financial Services Authority.