Agouron Pharmaceuticals (AGPH) Message Board

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Biotech / Medical : Agouron Pharmaceuticals (AGPH)

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To: Intel Trader who wrote (5145)	8/13/1998 4:07:00 PM
From: Biomaven	of 6136

More on the tracking stock: They say about 25% of the R&D expense goes with the oncology division. So AGPH general earnings will jump around $1.13 pre-tax per fully-diluted share (assuming I've done my math right - R&D last year was $150m, 33m diluted shares outstanding). So we are probably looking at earnings around $1.50 pro forma for the general division for the past year. (I've ignored any tax effect, because I don't know how it's going to be handled). Next question is what the market cap of the oncology division will be. My wild guess is $75 - $100m. That would leave the market cap for the general at $625 - 650m, or a price of around $20 and a historical PE of 13 (and a PS ratio of around 1). That all looks pretty cheap (or maybe not, depending what multiple you want to give to Viracept). These are quick back-of-the-envelope calculations, so feel free to correct / expand on them. Peter

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