Pengrowth Energy: Buy The Dip
Executive summary:2013 was a strong year for Pengrowth Energy.The recent decline is a clear buying opportunity.First production from Lindbergh Phase I is on schedule and slated for Q1 2015.The company has submitted the Lindbergh Phase II application to the EIA for an additional 17,500 BBL/D expansion.Shares of Pengrowth Energy (PGH) suffered a sharp 6% reversal on Monday soon after the company posted its Q4 2013 results. While the company posted strong quarterly results, the stock was hammered, likely thanks to a lower than expected FFO number escalated by the tensions in Ukraine.Q4 2013 OverviewProduction: 77,371 BOE/DFFO: $105.9MFFO per share: $0.20Oil and gas sales: $328.0BOil and gas sales per BOE: $46.08Operating expenses per BOE: $15.nike shoes34Operating netbacks per BOE: $20.82Pengrowth posted a strong quarter. While FFO per share did come in weak, this can be
largely explained by lower production related to the Lindbergh financing asset dispositions as well as wider crude oil differentials. Indeed, Q4 is an historical weak quarter for Canadian energy produces as pipelines often are overbooked and refineries in the Midwest shut down for maintenance.In addition, Pengrowth faced higher energy related costs in Q4. While down $16M Q/Q, higher coal prices caused Pengrowth's operating expenses to surge 16%% reversal on Monday soon after the company posted its Q4 2013 results. While the company posted strong quarterly results, the stock was hammered, likely thanks to a lower than expected FFO number escalated by the tensions in Ukraine.Q4 2013 OverviewProduction: 77,371 BOE/DFFO: $105.9MFFO per share: $0.20Oil and gas sales: $328.0BOil and gas sales per BOE: $46.08Operating expenses per BOE: $15.nike shoes34Operating netbacks per BOE: $20.82Pengrowth posted a strong quarter. While FFO per share did come in weak, this can be largely explained by lower production related to the Lindbergh financing asset dispositions as well as wider crude oil differentials. Indeed, Q4 is an historical weak quarter for Canadian energy produces as pipelines often are overbooked and refineries in the Midwest shut down for maintenance.In addition, Pengrowth faced higher energy related costs in Q4. While down $16M Q/Q, higher coal prices caused Pengrowth's operating expenses to surge 16%% reversal on Monday soon after the company posted its Q4 2013 results. While the company posted strong quarterly results, the stock was hammered, likely thanks to a lower than expected FFO number escalated by the tensions in Ukraine.Q4 2013 OverviewProduction: 77,371 BOE/DFFO: $105.9MFFO per share: $0.20Oil and gas sales: $328.0BOil and gas sales per BOE: $46.08Operating expenses per BOE: $15.nike shoes34Operating netbacks per BOE: $20.82Pengrowth posted a strong quarter. While FFO per share did come in weak, this can be largely explained by lower production related to the Lindbergh financing asset dispositions as well as wider crude oil differentials. Indeed, Q4 is an historical weak quarter for Canadian energy produces as pipelines often are overbooked and refineries in the Midwest shut down for maintenance.In addition, Pengrowth faced higher energy related costs in Q4. While down $16M Q/Q, higher coal prices caused Pengrowth's operating expenses to surge 16%% reversal on Monday soon after the company posted its Q4 2013 results. While the company posted strong quarterly results, the stock was hammered, likely thanks to a lower than expected FFO number escalated by the tensions in Ukraine.Q4 2013 OverviewProduction: 77,371 BOE/DFFO: $105.9MFFO per share: $0.20Oil and gas sales: $328.0BOil and gas sales per BOE: $46.08Operating expenses per BOE: $15.nike shoes34Operating netbacks per BOE: $20.82Pengrowth posted a strong quarter. While FFO per share did come in weak, this can be largely explained by lower production related to the Lindbergh financing asset dispositions as well as wider crude oil differentials. Indeed, Q4 is an historical weak quarter for Canadian energy produces as pipelines often are overbooked and refineries in the Midwest shut down for maintenance.In addition, Pengrowth faced higher energy related costs in Q4. While down $16M Q/Q, higher coal prices caused Pengrowth's operating expenses to surge 16% from prior year levels.Basically, the company was caught flat footed as energy demand in Western Canada outstripped supply, causing prices to increase drastically. As a result, Pengrowth has increased its hedges regarding energy consumption to about 78% for 2014, compared to about 65% last year.Pengrowth in 2013: A year of stabilizationFor 2013 overall, Pengrowth had a very successful year. The company was able to fully fund Phase I of Lindbergh via asset sales as well as balance its 'cash in, cash out' profile. The company was also able to replace 211% of its 2013 production with new 2P reserves, extending its reserve life to 17.4 years.In fact, based on the future net revenues associated with proved plus probable reserves, Pengrowth's net asset value ('NAV') is estimated to be $7.52 using a 10%% of its 2013 production with new 2P reserves, extending its reserve life to 17.4 years.In fact, based on the future net revenues associated with proved plus probable reserves, Pengrowth's net asset value ('NAV') is estimated to be $7.52 using a 10%% of its 2013 production with new 2P reserves, extending its reserve life to 17.4 years.In fact, based on the future net revenues associated with proved plus probable reserves, Pengrowth's net asset value ('NAV') is estimated to be $7.52 using a 10%% of its 2013 production with new 2P reserves, extending its reserve life to 17.4 years.In fact, based on the future net revenues associated with proved plus probable reserves, Pengrowth's net asset value ('NAV') is estimated to be $7.52 using a 10% discount
and $11.80 using a 5% discount.running shoesWhile Pengrowth's NAV is down slightly from last year, the stock is still clearly undervalued by at least 15%% discount.running shoesWhile Pengrowth's NAV is down slightly from last year, the stock is still clearly undervalued by at least 15%% discount.running shoesWhile Pengrowth's NAV is down slightly from last year, the stock is still clearly undervalued by at least 15%% discount.running shoesWhile Pengrowth's NAV is down slightly from last year, the stock is still clearly undervalued by at least 15%.(click to enlarge)Lindbergh is on budget and on scheduleFurthermore, construction at Pengrowth's critical Lindbergh project is going well. The two pilot well pairs continue to perform well, with an ISOR of about 2.0x. Total cumulative production from the two-well pilot has now exceeded 1.1 million barrels.The company has already spent 65% of the allocated capital as of March 3, 2014. During its conference call, the company noted that about 90%% of the allocated capital as of March 3, 2014. During its conference call, the company noted that about 90%% of the allocated capital as of March 3, 2014. During its conference call, the company noted that about 90%% of the allocated capital as of March 3, 2014. During its conference call, the company noted that about 90% of the major components have been ordered and are one site. In addition, about 50% of the drilling is complete. In total, about 3 to 4 months of drilling remain. First steam is estimated sometime in late Q4 2014, while initial production should start in Q1 2015.Lindbergh Phase I should add about 12,500 BBLs/D of high margin (30%% of the drilling is complete. In total, about 3 to 4 months of drilling remain. First steam is estimated sometime in late Q4 2014, while initial production should start in Q1 2015.Lindbergh Phase I should add about 12,500 BBLs/D of high margin (30%% of the drilling is complete. In total, about 3 to 4 months of drilling remain. First steam is estimated sometime in late Q4 2014, while initial production should start in Q1 2015.Lindbergh Phase I should add about 12,500 BBLs/D of high margin (30%% of the drilling is complete. In total, about 3 to 4 months of drilling remain. First steam is estimated sometime in late Q4 2014, while initial production should start in Q1 2015.Lindbergh Phase I should add about 12,500 BBLs/D of high margin (30% IRR) thermal oil production for Pengrowth, increasing its FFO per share by at least 30% in 2015 to an estimated $1.31.Also note that Pengrowth has already submitted its application for Lindbergh Phase II. While that project is estimated to be completed by 2017, environmental approval still needs to be done in advance before preparatory work can commence.One of the best things regarding Pengrowth's Lindbergh project is that after Phase I, no other project needs to be funded via asset sales or equity. All future Lindbergh capex is now self-funding via incremental cash flows from Phase I as well as Pengrowth's credit facility.ConclusionI find it hard to believe that Pengrowth could fall nearly 7%% in 2015 to an estimated $1.31.Also note that Pengrowth has already submitted its application for Lindbergh Phase II. While that project is estimated to be completed by 2017, environmental approval still needs to be done in advance before preparatory work can commence.One of the best things regarding Pengrowth's Lindbergh project is that after Phase I, no other project needs to be funded via asset sales or equity. All future Lindbergh capex is now self-funding via incremental cash flows from Phase I as well as Pengrowth's credit facility.ConclusionI find it hard to believe that Pengrowth could fall nearly 7%% in 2015 to an estimated $1.31.Also note that Pengrowth has already submitted its application for Lindbergh Phase II. While that project is estimated to be completed by 2017, environmental approval still needs to be done in advance before preparatory work can commence.One of the best things regarding Pengrowth's Lindbergh project is that after Phase I, no other project needs to be funded via asset sales or equity. All future Lindbergh capex is now self-funding via incremental cash flows from Phase I as well as Pengrowth's credit facility.ConclusionI find it hard to believe that Pengrowth could fall nearly 7%% in 2015 to an estimated $1.31.Also note that Pengrowth has already submitted its application for Lindbergh Phase II. While that project is estimated to be completed by 2017, environmental approval still needs to be done in advance before preparatory work can commence.One of the best things regarding Pengrowth's Lindbergh project is that after Phase I, no other project needs to be funded via asset sales or equity. All future Lindbergh capex is now self-funding via incremental cash flows from Phase I as well as Pengrowth's credit facility.ConclusionI find it hard to believe that Pengrowth could fall nearly 7% on relatively little news. Yes, FFO was weak. However, this is merely a short-term concern as Q4 is typically is weak quarter for the stock.The future is very bright for Pengrowth. Lindbergh should start adding considerable amounts of FFO starting in 2015. In addition, Pengrowth has little need for further financing, allowing its current production base to stay intact.Disclaimer: The opinions in this article are for informational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned. Please do your own due diligence before making any investment decision.Disclosure: I am long
PGH. I wrote this article myself, and
it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).running shoes I have no business relationship with any company whose stock is mentioned in this article.nike shoes (More...)We only use your contact details to reply to your request for more information.We do not sell the personal contact data you submit to anyone else.
largely explained by lower production related to the Lindbergh financing asset dispositions as well as wider crude oil differentials. Indeed, Q4 is an historical weak quarter for Canadian energy produces as pipelines often are overbooked and refineries in the Midwest shut down for maintenance.In addition, Pengrowth faced higher energy related costs in Q4. While down $16M Q/Q, higher coal prices caused Pengrowth's operating expenses to surge 16%% reversal on Monday soon after the company posted its Q4 2013 results. While the company posted strong quarterly results, the stock was hammered, likely thanks to a lower than expected FFO number escalated by the tensions in Ukraine.Q4 2013 OverviewProduction: 77,371 BOE/DFFO: $105.9MFFO per share: $0.20Oil and gas sales: $328.0BOil and gas sales per BOE: $46.08Operating expenses per BOE: $15.nike shoes34Operating netbacks per BOE: $20.82Pengrowth posted a strong quarter. While FFO per share did come in weak, this can be largely explained by lower production related to the Lindbergh financing asset dispositions as well as wider crude oil differentials. Indeed, Q4 is an historical weak quarter for Canadian energy produces as pipelines often are overbooked and refineries in the Midwest shut down for maintenance.In addition, Pengrowth faced higher energy related costs in Q4. While down $16M Q/Q, higher coal prices caused Pengrowth's operating expenses to surge 16%% reversal on Monday soon after the company posted its Q4 2013 results. While the company posted strong quarterly results, the stock was hammered, likely thanks to a lower than expected FFO number escalated by the tensions in Ukraine.Q4 2013 OverviewProduction: 77,371 BOE/DFFO: $105.9MFFO per share: $0.20Oil and gas sales: $328.0BOil and gas sales per BOE: $46.08Operating expenses per BOE: $15.nike shoes34Operating netbacks per BOE: $20.82Pengrowth posted a strong quarter. While FFO per share did come in weak, this can be largely explained by lower production related to the Lindbergh financing asset dispositions as well as wider crude oil differentials. Indeed, Q4 is an historical weak quarter for Canadian energy produces as pipelines often are overbooked and refineries in the Midwest shut down for maintenance.In addition, Pengrowth faced higher energy related costs in Q4. While down $16M Q/Q, higher coal prices caused Pengrowth's operating expenses to surge 16%% reversal on Monday soon after the company posted its Q4 2013 results. While the company posted strong quarterly results, the stock was hammered, likely thanks to a lower than expected FFO number escalated by the tensions in Ukraine.Q4 2013 OverviewProduction: 77,371 BOE/DFFO: $105.9MFFO per share: $0.20Oil and gas sales: $328.0BOil and gas sales per BOE: $46.08Operating expenses per BOE: $15.nike shoes34Operating netbacks per BOE: $20.82Pengrowth posted a strong quarter. While FFO per share did come in weak, this can be largely explained by lower production related to the Lindbergh financing asset dispositions as well as wider crude oil differentials. Indeed, Q4 is an historical weak quarter for Canadian energy produces as pipelines often are overbooked and refineries in the Midwest shut down for maintenance.In addition, Pengrowth faced higher energy related costs in Q4. While down $16M Q/Q, higher coal prices caused Pengrowth's operating expenses to surge 16% from prior year levels.Basically, the company was caught flat footed as energy demand in Western Canada outstripped supply, causing prices to increase drastically. As a result, Pengrowth has increased its hedges regarding energy consumption to about 78% for 2014, compared to about 65% last year.Pengrowth in 2013: A year of stabilizationFor 2013 overall, Pengrowth had a very successful year. The company was able to fully fund Phase I of Lindbergh via asset sales as well as balance its 'cash in, cash out' profile. The company was also able to replace 211% of its 2013 production with new 2P reserves, extending its reserve life to 17.4 years.In fact, based on the future net revenues associated with proved plus probable reserves, Pengrowth's net asset value ('NAV') is estimated to be $7.52 using a 10%% of its 2013 production with new 2P reserves, extending its reserve life to 17.4 years.In fact, based on the future net revenues associated with proved plus probable reserves, Pengrowth's net asset value ('NAV') is estimated to be $7.52 using a 10%% of its 2013 production with new 2P reserves, extending its reserve life to 17.4 years.In fact, based on the future net revenues associated with proved plus probable reserves, Pengrowth's net asset value ('NAV') is estimated to be $7.52 using a 10%% of its 2013 production with new 2P reserves, extending its reserve life to 17.4 years.In fact, based on the future net revenues associated with proved plus probable reserves, Pengrowth's net asset value ('NAV') is estimated to be $7.52 using a 10% discount and $11.80 using a 5% discount.running shoesWhile Pengrowth's NAV is down slightly from last year, the stock is still clearly undervalued by at least 15%% discount.running shoesWhile Pengrowth's NAV is down slightly from last year, the stock is still clearly undervalued by at least 15%% discount.running shoesWhile Pengrowth's NAV is down slightly from last year, the stock is still clearly undervalued by at least 15%% discount.running shoesWhile Pengrowth's NAV is down slightly from last year, the stock is still clearly undervalued by at least 15%.(click to enlarge)Lindbergh is on budget and on scheduleFurthermore, construction at Pengrowth's critical Lindbergh project is going well. The two pilot well pairs continue to perform well, with an ISOR of about 2.0x. Total cumulative production from the two-well pilot has now exceeded 1.1 million barrels.The company has already spent 65% of the allocated capital as of March 3, 2014. During its conference call, the company noted that about 90%% of the allocated capital as of March 3, 2014. During its conference call, the company noted that about 90%% of the allocated capital as of March 3, 2014. During its conference call, the company noted that about 90%% of the allocated capital as of March 3, 2014. During its conference call, the company noted that about 90% of the major components have been ordered and are one site. In addition, about 50% of the drilling is complete. In total, about 3 to 4 months of drilling remain. First steam is estimated sometime in late Q4 2014, while initial production should start in Q1 2015.Lindbergh Phase I should add about 12,500 BBLs/D of high margin (30%% of the drilling is complete. In total, about 3 to 4 months of drilling remain. First steam is estimated sometime in late Q4 2014, while initial production should start in Q1 2015.Lindbergh Phase I should add about 12,500 BBLs/D of high margin (30%% of the drilling is complete. In total, about 3 to 4 months of drilling remain. First steam is estimated sometime in late Q4 2014, while initial production should start in Q1 2015.Lindbergh Phase I should add about 12,500 BBLs/D of high margin (30%% of the drilling is complete. In total, about 3 to 4 months of drilling remain. First steam is estimated sometime in late Q4 2014, while initial production should start in Q1 2015.Lindbergh Phase I should add about 12,500 BBLs/D of high margin (30% IRR) thermal oil production for Pengrowth, increasing its FFO per share by at least 30% in 2015 to an estimated $1.31.Also note that Pengrowth has already submitted its application for Lindbergh Phase II. While that project is estimated to be completed by 2017, environmental approval still needs to be done in advance before preparatory work can commence.One of the best things regarding Pengrowth's Lindbergh project is that after Phase I, no other project needs to be funded via asset sales or equity. All future Lindbergh capex is now self-funding via incremental cash flows from Phase I as well as Pengrowth's credit facility.ConclusionI find it hard to believe that Pengrowth could fall nearly 7%% in 2015 to an estimated $1.31.Also note that Pengrowth has already submitted its application for Lindbergh Phase II. While that project is estimated to be completed by 2017, environmental approval still needs to be done in advance before preparatory work can commence.One of the best things regarding Pengrowth's Lindbergh project is that after Phase I, no other project needs to be funded via asset sales or equity. All future Lindbergh capex is now self-funding via incremental cash flows from Phase I as well as Pengrowth's credit facility.ConclusionI find it hard to believe that Pengrowth could fall nearly 7%% in 2015 to an estimated $1.31.Also note that Pengrowth has already submitted its application for Lindbergh Phase II. While that project is estimated to be completed by 2017, environmental approval still needs to be done in advance before preparatory work can commence.One of the best things regarding Pengrowth's Lindbergh project is that after Phase I, no other project needs to be funded via asset sales or equity. All future Lindbergh capex is now self-funding via incremental cash flows from Phase I as well as Pengrowth's credit facility.ConclusionI find it hard to believe that Pengrowth could fall nearly 7%% in 2015 to an estimated $1.31.Also note that Pengrowth has already submitted its application for Lindbergh Phase II. While that project is estimated to be completed by 2017, environmental approval still needs to be done in advance before preparatory work can commence.One of the best things regarding Pengrowth's Lindbergh project is that after Phase I, no other project needs to be funded via asset sales or equity. All future Lindbergh capex is now self-funding via incremental cash flows from Phase I as well as Pengrowth's credit facility.ConclusionI find it hard to believe that Pengrowth could fall nearly 7% on relatively little news. Yes, FFO was weak. However, this is merely a short-term concern as Q4 is typically is weak quarter for the stock.The future is very bright for Pengrowth. Lindbergh should start adding considerable amounts of FFO starting in 2015. In addition, Pengrowth has little need for further financing, allowing its current production base to stay intact.Disclaimer: The opinions in this article are for informational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned. Please do your own due diligence before making any investment decision.Disclosure: I am long PGH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).running shoes I have no business relationship with any company whose stock is mentioned in this article.nike shoes (More...)We only use your contact details to reply to your request for more information.We do not sell the personal contact data you submit to anyone else.asics running shoes
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RadioShack to close 1,100 'underperforming' US stores
RadioShack, once a wildly popular retail home for tech fanatics, has long since lost its luster and now the time has come to shutter some stores.The company on Tuesday announced that it will close up to 1,100 stores across the US. RadioShack didn't say how long it will take to close the 'underperforming' stores, butit seems to be set on moving as quickly as possible.That RadioShack is closing 1,100 stores has surprised some who had been under the impression the company wouldn't act so aggressively. Last month, the Wall Street Journal reported, citing people who claimed to have knowledge of its plans, that RadioShack would only close 500 stores.After the closures, RadioShack's US stores will number about 3,100 to 3,200. The company will also have 900 dealer franchise locations, bringing its total presence across the United States to 4,000 locations.RadioShack is in the midst of a rebranding intended to make its retail locations more friendly to today's consumers, rather than a
hub for folks who need parts for their gadgetry. The company said that its remaining
stores will have a new product assortment, and that in stores where it has already made the conversion, sales are up.Still, RadioShack had a difficult fourth quarter of 2013, reporting $935.nike shoes4 million in revenue, compared to $1.nike shoes2 billion in the prior year. The company's annual losses also widened, jumping from $139.4 million in 2012
to $400.nike shoes2 million in 2013.
hub for folks who need parts for their gadgetry. The company said that its remaining stores will have a new product assortment, and that in stores where it has already made the conversion, sales are up.Still, RadioShack had a difficult fourth quarter of 2013, reporting $935.nike shoes4 million in revenue, compared to $1.nike shoes2 billion in the prior year. The company's annual losses also widened, jumping from $139.4 million in 2012 to $400.nike shoes2 million in 2013.http://thecheckerr.com
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Web Design For Charity
Charity web design is a part of web designing. There are many charity websites on internet and many more to come. All these websites need web designers. The basic purpose of each website is to let the people know that there is someone to help you. This can be an amazing & satisfying experience to work and promote a charity website. A specific charity organization works to help a particular community. Some promote feeding the hungry, some try to help people to build their own home, some work to help old people to live their life comfortably.thecheckerr.com A charity organization can work to help anyone
but there basic purpose is the same as help the needy people. Now it on you whether you want to charge for your work or you want to donate your earning along with the volunteer work. You need to make a simple website. There are pictures, videos and other works of the charity so that visitors can easily understand what kind of charity organization is this. Some of the websites have a charity button for donation so that their online visitors can donate something to the charity. Although these websites are very simple but one should not take this work for granted.thecheckerr.com There are many charity websites people usually visit. Many times the visitor list per day goes up to many millions. It an easy way to communicate with people all over the world. People can donate easily on website rather than posting or couriering. The website should look appealing and catch the visitor eye. One should get the whole information about the charity organization & its work in few seconds. If we talk about the Non-profit organizations and their website then they are quite similar to commercial websites. They also serve their clients but they don�t want profit that why they need funding to run the organization. So there are three categorization of the websites first one is commercial websites, second one is Non-Profit organizations websites and third is charity websites. Commercial websites get their funding from business they do and profit they get. Non-Profit Organizations and charity organizations get their funding from people who want to help these organizations. Websites is of a great help to get more and more donation and help the needy people. Through websites an organization can collect charity from all around the world. If you want to design a website then there go for Website Design Company Delhi and Website Designing Company Gurgaon for world class web designing.
but there basic purpose is the same as help the needy people. Now it on you whether you want to charge for your work or you want to donate your earning along with the volunteer work. You need to make a simple website. There are pictures, videos and other works of the charity so that visitors can easily understand what kind of charity organization is this. Some of the websites have a charity button for donation so that their online visitors can donate something to the charity. Although these websites are very simple but one should not take this work for granted.thecheckerr.com There are many charity websites people usually visit. Many times the visitor list per day goes up to many millions. It an easy way to communicate with people all over the world. People can donate easily on website rather than posting or couriering. The website should look appealing and catch the visitor eye. One should get the whole information about the charity organization & its work in few seconds. If we talk about the Non-profit organizations and their website then they are quite similar to commercial websites. They also serve their clients but they don�t want profit that why they need funding to run the organization. So there are three categorization of the websites first one is commercial websites, second one is Non-Profit organizations websites and third is charity websites. Commercial websites get their funding from business they do and profit they get. Non-Profit Organizations and charity organizations get their funding from people who want to help these organizations. Websites is of a great help to get more and more donation and help the needy people. Through websites an organization can collect charity from all around the world. If you want to design a website then there go for Website Design Company Delhi and Website Designing Company Gurgaon for world class web designing.linked web-site
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Drugmakers Slash Spending On Doctors' Sales Talks : Shots - Health News
Now that Eli Lilly & Co.'s antidepressant Cymbalta and some other blockbusters have gone generic, the company is spending less on promotional activities by doctors.thecheckerr.comSome of the nation's largest pharmaceutical companies have dramatically reduced payments to health
professionals for promotional speeches amid heightened public scrutiny of such spending, a ProPublica analysis shows. Eli Lilly & Co.'s payments to speakers dropped by 55 percent, from $47.9 million in 2011 to $21.6 million in 2012. Pfizer's speaking payments fell 62 percent over the same period, from nearly $22 million to $8.3 million. And Novartis, the largest drugmaker in the U.S. as measured by 2012 sales, spent 40 percent less on speakers that year than it did between October 2010 and September 2011, reducing payments from $24.8 million to $14.8 million. The sharp declines coincide with increased attention from regulators, academic institutions and the public to pharmaceutical company marketing practices. A number of companies have settled federal whistleblower lawsuits in recent years that accused them of improperly marketing their drugs. In addition, the Physician Payment Sunshine Act, a part of the 2010 health reform law, will soon require all pharmaceutical and medical device companies to publicly report payments to physicians. The first disclosures required under the act are expected in September and will cover the period of August to December 2013. Within the industry, some companies are re-evaluating the role of physician speakers in their marketing repertoire. GlaxoSmithKline announced in December that it would stop paying doctors to speak on behalf of its drugs. Its speaking tab plummeted from $24 million in 2011 to $9.3 million in 2012.hide captionData compiled by ProPublica show decines in spending in 2012 compared with 2011.Not all companies have cut speaker payments: Johnson & Johnson increased such spending by 17 percent from 2011 to 2012; AstraZeneca's payments stayed about flat in 2012 after a steep decline the previous year. ProPublica has been tracking publicly reported payments by drug companies since 2010 as part of its Dollars for Docs project. Users can search for their doctors to see if they have received compensation from the 15 companies that make such information available online. (We've just updated our application to include payments made through the end of 2012, totaling $2.5 billion. Forest Labs, which only began reporting in 2012, reported speaking payments of $40 million, more than any other company in Dollars for Docs.) Some companies in the database said their declines have less to do with the Sunshine Act and more to do with the loss of patent protection for key products. Lilly, for example, began facing generic competition to its blockbuster antipsychotic Zyprexa in late 2011. Its antidepressant Cymbalta lost its patent at the end of 2013. 'The value of educational programs tends to be higher when we're launching a new medicine or we have new clinical data/new indication,' Lilly spokesman J. Scott MacGregor said in an email, adding that the drop in speaking payments also reflects the increased use of Web conferencing. Pfizer's patent on Lipitor, its top-selling cholesterol drug, expired in 2011. 'Like any other company, our business practices must adapt to the changing nature of our product portfolio, based in part on products going off patent and new products being introduced into the market,' company spokesman Dean Mastrojohn said in an email. Novartis' patent for its breast cancer drug Femara expired in 2011, its hypertension drug Diovan in 2012 and its cancer drug Zometa in 2013. In a statement, Novartis said speaking payments dropped in 2012 in part because of a shift from big blockbuster drugs that many doctors prescribe toward specialty products prescribed by fewer physicians. Resources were also shifted 'to support potential future product launches,' a spokeswoman said in an email.One of the first drugmakers to disclose its payments to doctors has pulled the data offline. Cephalon, now a subsidiary of Teva Pharmaceutical Industries, had reported its ties to doctors since 2009 under the terms of a Corporate Integrity Agreement with the inspector general of the Department of Health and Human Services. The pact was put in place after the company agreed to pay a $425 million settlement in 2008 for marketing Actiq, Gabitril and Provigil for uses not approved by the Food and Drug Administration. But that requirement expired last September, and Teva pulled the data offline earlier this year when it updated its website. Cephalon's payments from 2009 to 2012 continue to be available on ProPublica's Dollars for Docs website, which aggregates payments made by 15 pharmaceutical companies since 2009. During that time, the company reported nearly $90 million in payments to doctors. The gap in the company's disclosures will be short. Teva will have to resume publicly reporting its payments to doctors later this year under the Physician Payment Sunshine Act, which requires that all pharmaceutical and medical device companies disclose payments over $10 to doctors. The first report, covering the period of August to December 2013, is expected to be released in September of this year.The industry's increased emphasis on expensive specialty medications for such conditions as multiple sclerosis or hepatitis C has been striking, said Aaron Kesselheim, an assistant professor of medicine at Harvard Medical School. A piece in the New England Journal of Medicine last week noted that half of the 139 drugs approved by the Food and Drug Administration since 2009 were for rare diseases and cancers. 'It's possible the number of physicians they need to support sales of these items is less, leading to lower payments overall,' Kesselheim said. In some cases, companies maintained or made smaller cuts to other forms of physician compensation while pulling back dramatically on speaking payments. Pfizer's spending on consultants dropped 9 percent from 2011 to 2012, far less than its payments to speakers. The company's spending on research stayed essentially the same. Lilly increased spending on physician researchers by more than 20 percent, while reducing payments to consultants by more than two-thirds. Many bioethicists and leaders of major academic medical centers frown upon physicians delivering promotional talks for drug companies, saying they turn doctors into sales representatives rather than leaders in research and patient care. Officials with Pharmaceutical Research and Manufacturers of America, an industry trade group, dispute this characterization. They said they are working with their member companies to prepare for the Sunshine Act and have created a campaign to promote the value of drug company-doctor collaborations. 'Companies will make their own independent decisions about how to engage professionals,' said Kendra Martello, PhRMA's deputy vice president of strategic operations. Scott Liebman, an attorney who advises pharmaceutical companies on the Sunshine Act, said it's too early to know how much the law's requirements are affecting company practices, in part because it's so new. The fact that some companies are cutting back on speaking while preserving their spending on research and consulting suggests that other business forces could be at play, he added. 'It's very hard to pinpoint exactly why that's happening,' Liebman said. 'I think there's a lot of potential answers to that. I just don't know which is the right one.'
professionals for promotional speeches amid heightened public scrutiny of such spending, a ProPublica analysis shows. Eli Lilly & Co.'s payments to speakers dropped by 55 percent, from $47.9 million in 2011 to $21.6 million in 2012. Pfizer's speaking payments fell 62 percent over the same period, from nearly $22 million to $8.3 million. And Novartis, the largest drugmaker in the U.S. as measured by 2012 sales, spent 40 percent less on speakers that year than it did between October 2010 and September 2011, reducing payments from $24.8 million to $14.8 million. The sharp declines coincide with increased attention from regulators, academic institutions and the public to pharmaceutical company marketing practices. A number of companies have settled federal whistleblower lawsuits in recent years that accused them of improperly marketing their drugs. In addition, the Physician Payment Sunshine Act, a part of the 2010 health reform law, will soon require all pharmaceutical and medical device companies to publicly report payments to physicians. The first disclosures required under the act are expected in September and will cover the period of August to December 2013. Within the industry, some companies are re-evaluating the role of physician speakers in their marketing repertoire. GlaxoSmithKline announced in December that it would stop paying doctors to speak on behalf of its drugs. Its speaking tab plummeted from $24 million in 2011 to $9.3 million in 2012.hide captionData compiled by ProPublica show decines in spending in 2012 compared with 2011.Not all companies have cut speaker payments: Johnson & Johnson increased such spending by 17 percent from 2011 to 2012; AstraZeneca's payments stayed about flat in 2012 after a steep decline the previous year. ProPublica has been tracking publicly reported payments by drug companies since 2010 as part of its Dollars for Docs project. Users can search for their doctors to see if they have received compensation from the 15 companies that make such information available online. (We've just updated our application to include payments made through the end of 2012, totaling $2.5 billion. Forest Labs, which only began reporting in 2012, reported speaking payments of $40 million, more than any other company in Dollars for Docs.) Some companies in the database said their declines have less to do with the Sunshine Act and more to do with the loss of patent protection for key products. Lilly, for example, began facing generic competition to its blockbuster antipsychotic Zyprexa in late 2011. Its antidepressant Cymbalta lost its patent at the end of 2013. 'The value of educational programs tends to be higher when we're launching a new medicine or we have new clinical data/new indication,' Lilly spokesman J. Scott MacGregor said in an email, adding that the drop in speaking payments also reflects the increased use of Web conferencing. Pfizer's patent on Lipitor, its top-selling cholesterol drug, expired in 2011. 'Like any other company, our business practices must adapt to the changing nature of our product portfolio, based in part on products going off patent and new products being introduced into the market,' company spokesman Dean Mastrojohn said in an email. Novartis' patent for its breast cancer drug Femara expired in 2011, its hypertension drug Diovan in 2012 and its cancer drug Zometa in 2013. In a statement, Novartis said speaking payments dropped in 2012 in part because of a shift from big blockbuster drugs that many doctors prescribe toward specialty products prescribed by fewer physicians. Resources were also shifted 'to support potential future product launches,' a spokeswoman said in an email.One of the first drugmakers to disclose its payments to doctors has pulled the data offline. Cephalon, now a subsidiary of Teva Pharmaceutical Industries, had reported its ties to doctors since 2009 under the terms of a Corporate Integrity Agreement with the inspector general of the Department of Health and Human Services. The pact was put in place after the company agreed to pay a $425 million settlement in 2008 for marketing Actiq, Gabitril and Provigil for uses not approved by the Food and Drug Administration. But that requirement expired last September, and Teva pulled the data offline earlier this year when it updated its website. Cephalon's payments from 2009 to 2012 continue to be available on ProPublica's Dollars for Docs website, which aggregates payments made by 15 pharmaceutical companies since 2009. During that time, the company reported nearly $90 million in payments to doctors. The gap in the company's disclosures will be short. Teva will have to resume publicly reporting its payments to doctors later this year under the Physician Payment Sunshine Act, which requires that all pharmaceutical and medical device companies disclose payments over $10 to doctors. The first report, covering the period of August to December 2013, is expected to be released in September of this year.The industry's increased emphasis on expensive specialty medications for such conditions as multiple sclerosis or hepatitis C has been striking, said Aaron Kesselheim, an assistant professor of medicine at Harvard Medical School. A piece in the New England Journal of Medicine last week noted that half of the 139 drugs approved by the Food and Drug Administration since 2009 were for rare diseases and cancers. 'It's possible the number of physicians they need to support sales of these items is less, leading to lower payments overall,' Kesselheim said. In some cases, companies maintained or made smaller cuts to other forms of physician compensation while pulling back dramatically on speaking payments. Pfizer's spending on consultants dropped 9 percent from 2011 to 2012, far less than its payments to speakers. The company's spending on research stayed essentially the same. Lilly increased spending on physician researchers by more than 20 percent, while reducing payments to consultants by more than two-thirds. Many bioethicists and leaders of major academic medical centers frown upon physicians delivering promotional talks for drug companies, saying they turn doctors into sales representatives rather than leaders in research and patient care. Officials with Pharmaceutical Research and Manufacturers of America, an industry trade group, dispute this characterization. They said they are working with their member companies to prepare for the Sunshine Act and have created a campaign to promote the value of drug company-doctor collaborations. 'Companies will make their own independent decisions about how to engage professionals,' said Kendra Martello, PhRMA's deputy vice president of strategic operations. Scott Liebman, an attorney who advises pharmaceutical companies on the Sunshine Act, said it's too early to know how much the law's requirements are affecting company practices, in part because it's so new. The fact that some companies are cutting back on speaking while preserving their spending on research and consulting suggests that other business forces could be at play, he added. 'It's very hard to pinpoint exactly why that's happening,' Liebman said. 'I think there's a lot of potential answers to that. I just don't know which is the right one.'