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Biotech / Medical : NNVC - NanoViricides, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: HardToFind who wrote (12401)

11/6/2019 4:04:25 PM

From: HardToFind

Read Replies (2) | Respond to of 12873

Here's the analysis: (I'll be the first to admit, this was quick and dirty...the reader must decide its predictive usefulness:

10 Top Drug Companies: GILD, CELG, BIIB, AMGN, ABBV, ABT, MRK, JNJ, LLY, BMY

I took the following 2018 metrics from Yahoo! Finance:

Revenues
COGS (cost of goods sold)
R&D expenses
EBITDA (profits before taxes, etc.)
Net profits

I subtracted from pre-tax earnings:

30% on COGS and R&D (TheraCour markup)
15% of revenues (TheraCour royalty)
Note: No additional charges for NNVC/TheraCour licensing

From this I calculated the new pre-tax earnings
Using the same tax rate I calculated after-tax earnings
I calculated the profit reduction % for each company
(due to my simplistic method, it was the same ratio for pre- and post-tax, shown below)

Ticker	% Reduction in Earnings
GILD	60.94%
CELG	69.03%
BIIB	46.96%
AMGN	54.07%
ABBV	163.78%
ABT	130.26%
MRK	140.64%
JNJ	92.29%
LLY	126.91%
BMY	106.83%

Half do not make a profit.

Please feel free to make your own spreadsheet and question my assumptions.

My assessment: we're screwed (with 99.99% confidence).

Dropbox link to my spreadsheet: