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 : PFE (Pfizer) How high will it go?
PFE 25.82+0.2%3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Barron Von Hymen who wrote (757)3/30/1998 1:24:00 AM
From: JPM  Read Replies (3) of 9523
 
"With Viagra to be sold about $7 a pill, gives treatment costs per person at about ( 7 X 52 ) $364. I'll use a profit margin of 17% (Pfizer's 1997 margins from SEC reports ranges from 17 to 19% ) which gives me roughly $4.2 billion in net profits for one year."

Baron,

you have some seriously flawed #s... let's assume as you did that 10% of potential viagra customers use the drug at your rate of 1x/week...

that's 3million people * $364 = $1.092 Billion in SALES !!! at 20% profit margin, that's 220 Million in earnings... or about 20c per share!

As it is, PFE has a PE of about 50, yet growth is nowhere near that, and I might add that PFE has a price/sales of 10 or so, making it quite pricey.

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