Tokyo, I guess I forgot the taxes
Zonagen does have a pretty good sized loss carry forward, but it won't last long once they going.
Here's my reasoning - but remember, I'm starting with the assumption that Vasomax WILL be approved - OK? If you 100% deny that, it's obviously a different story.
The factor of 20 was, IMHO, a conservative P/E multiple for a company like Zonagen - a developing biotech with one drug approved and other compounds in development. Once the U.S. gets rolling I'm fairly certain that domestic royalties will take the company's earnings WAY into the black. One of the things that most posters never consider is just how efficiently Zonagen is operated. Joe is a VERY thrifty guy. Anyway, at that time, royalties from places like Mexico will just be gravy - going straight to the bottom line - so the multiple can be applied directly. My math was:
$80K x 12 Months/12 M shares = .08, x 20 = $1.60 rounded down to $1.50.
So, now considering the taxes & using your numbers, .06 x 20, the "Mexican effect" would be $1.20/share.
Sorry it wasn't clearer the first time. |
