Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (4355)	7/26/2001 12:00:08 PM
From: Michael Young	Read Replies (1) \| Respond to of 52153

From what I understand, sales for Xopenex will potentially reach $300 + million around 2005. The current market cap is nearly $3.5 billion. Trading at 10x 2005 sales is obviously steep. But much more reasonable considering that by that time they quite possibly might have two or three more drugs addressing $500 million + market opportunities. Forgive my ignorance, but what is the future potential for Allegra royalties? My understanding has been that SEPR only receives a very small piece of that pie. MIKE

To: Biomaven who wrote (4355)	7/26/2001 12:20:09 PM
From: IRWIN JAMES FRANKEL	Respond to of 52153

I agree Peter. Here is my view of the statement. I now think that peak sales of Xopenex nebule should reach $400 million. That is without MDI which should be much bigger. For a mature product with great margins and long patent life, 6 to 8 times sales seems ball park for valuation. That is $2.4 to 3.2 billion. Allegra is doing run rate royalties of $44 million and all flows to the bottom line. Growing 40% (not sustainable) but could still be worth 15 to 20 times current annual royalties. So call it $600 million to $800 million. Total range $3 to $4 billion. ij