Doing it our way now: the approach this company pioneered is becoming the market's way
The model's full reasoning — Q2 2017 call → NOWe need to determine if management describes that their way of doing things is being adopted, copied, or moved toward by others in the market. The transcript mentions value-based contracting in MS. Michel says: "We are delivering on our plan to demonstrate leadership in MS through value-based contracting with four agreements executed in July. We are piloting two separate approaches... We believe this pilot will provide valuable information that we can apply to future contracting approaches as we work to tie the pricing of our products to the clinical value and expand formulary access for patients." Later, he says: "We are proud of Biogen's leadership position in fostering value-based contracting." And in the Q&A, he says: "We're extremely pleased that the team was able to foster value-based contract... we were able to foster four of them and two types... It's for us to try to learn and to measure the impact, bring real world evidence and measure how we move forward from there. It's not a financial objective at the outset, it is just changing the paradigm and being the leader and being more responsible. This is what the industry deserves." Does this indicate that others are adopting Biogen's approach? The transcript does not mention competitors or others following Biogen's value-based contracting. It only says Biogen is leading and piloting. There is no statement that others are copying or moving toward it. The question asks if management describes that others are now following the company's lead. Here, management only claims leadership and piloting, not that others are adopting. So answer NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| AES | The AES Corporation | Q1 2024 | 2024-05-03 | C+ |
| GGR | Gogoro Inc. | Q1 2023 | 2023-05-11 | D |
| TGT | Target Corporation | Q4 2022 | 2023-02-28 | C |
| ORAN | Orange SA | Q2 2018 | 2018-07-26 | B |
| USFD | US Foods Holding Corp. | Q1 2018 | 2018-05-12 | C |
| SHOO | Steven Madden, Ltd. | Q1 2017 | 2017-04-21 | C |
AES · Q1 2024 → YESThe question is: Does management describe that the WAY THIS COMPANY DOES THINGS is NOW BEING ADOPTED, COPIED, OR MOVED TOWARD BY OTHERS IN ITS MARKET, so that the company's own way of doing things is ...
GGR · Q1 2023 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?
TGT · Q4 2022 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?