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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: Cal Gary who wrote (7896)	10/25/2001 6:24:33 PM
From: Montana Wildhack	Read Replies (1) \| Respond to of 14101

CG, I see no payback until the second year and can verify that this product is old and with a declining sales profile. It seems to be stronger in the UK while it still sells in other markets - but this may be why the Pennsaid advertising featured the word Diclofenac. I agree with your summary of the situation especially with regard to the fact its already there and its the sales presentation part that is most relevant. This drug is indicated for Rheumatoid arthritis and I saw no mention of Osteo although there were several mentions of sports injuries and inflammation. The numbers work out roughly: 107,000 at 80% is 133,750 pounds Sterling (can we all agree just to put an 'S' in the future?) gross sales. That's 6,955,000 S a year in sales. Profit on that would be 5,564,000 S. Profit after the 80,000 S a week to Parke-Davis is 1,404,000 S. Since they're paying 1,900,000 up front plus something around 800,000 for the existing inventory - they project beginning a return on investment very late in the second year. Meantime Parke-Davis is getting 59.8% of revenues for close to 3 years plus the 2,7 million or so upfront. The key is they also drop sales effort, warehousing and (not mentioned) manufacturing costs. While Provalis doubles its healthcare sales, shows a good revenue growth, and has a product that a few years out should start paying off as an already firmly established product. I don't see long term sales effort by Provalis. This is a little like buying the Aspirin product. Everybody already knows what it is. Campaigns to sell its features aren't in the cards. The effort will be to let all the right parties know this is now sold by Provalis and this may provide a bit more presence for them in the healthcare community. Market agrees with you. Non event for Dimethaid. Wolf