Hello, Miljenko,
Thanks for your comments. I have re-checked my notes from the CC and my notepad for NXTR, and have the following to add:
Am sale:
The Am sale in the traditionally weak Q3 is very decent. (ref. the sale change in LIPO, for example). Given the fact that NXTR is selling as a premium drug and it is the third to enter the US market, the fact that it is gaining US market share confirms the point you made earlier -- Am is a better drug. This is the strong evidence for us to believe that Am will become a market leader. The question is how long it will take Fujusawa to do so. The next question, and more important one I would say, is how much market share Am can take from conventional Ampho- B.
Cash and AR:
NXTR received $15M from the sale of its interest in Proligo, the other $6+M is the NXTR's share of the asset value contributed by SKW (a plant and some other stuff.) Of the $15M, NXTR then contributed back to Proligo $4.9M as the working capital. NXTR had an operation loss of $1.1M in Q3, that leaves $9M that has gone into AR (- increase in account payable) and capital expenditure ( - D&A). Even if all goes to AR, it is an increase of $9M, rather than $21M.
I guess we will have to wait for the 10Q to come out to find out the detail.
More later,
Steven |
