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Biotech / Medical : Lidak Pharm. [LDAKA]

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To: luis a. garcia who wrote (955)3/11/1998 10:10:00 AM
From: Henry Volquardsen  Read Replies (1) of 1115
 
I think the $64 question that needs to be answered re cash flow outlook is how quickly and how much they gain market penetration. I believe we are both safe in assuming, that given the nature of the compound, production costs should not be huge. Then, assuming they go prescription to start, the margins should be healthy. The marketing and sales needed will probably have a relatively large upfront fixed cost component, unless contracted out, so that returns will be low until at first until we get over a threshhold and then will start to accelerate. This is all of course speculative without more details regarding cost of production etc.
But I believe the key element will be how quickly we grow market penetration.
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