SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : Biotech Valuation
CRSP 55.15+2.5%3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Icebrg who wrote (8724)6/22/2003 7:04:20 AM
From: Icebrg   of 52153
 
Profitability among companies included in the NBI-index

One comment, I think I dare to make. It is surprising to see how heavy the struggling group is in the R&D department. They are the group that spends the most. Without competition.

Equally it is noteworthy that their S, G and A figures are so high. Slightly higher than in the group with limited sales (revenue less than 100 mUSD per year). It does cost a lot to keep a sales force on foot, active and happy. Something very few in the struggler's group have to worry about. But there are a lot of CEOs and management types who should be awarded in line with the "Industry Standards". And with 41 companies in the struggling group compared with 18 in the small revenue group, that might make a difference. If it costs 3 mUSD per year to keep the CEO, the management and the directors satisfied, that cost alone would account for almost 70 mUSD. Some kind of consolidation might be positive for the biotech group as it strives towards profitability.

Erik
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext