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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?


To: Tokyo VD who wrote (5839)10/7/1998 11:57:00 AM
From: Linda Kaplan  Read Replies (2) | Respond to of 7041
 
Tokyo: Is that likely to be a yearly estimate, a first year estimate, a lifetime estimate? Thanks for any elucidation.

Linda



To: Tokyo VD who wrote (5839)10/7/1998 11:58:00 AM
From: Ron Sigourney  Respond to of 7041
 
Toyko, Thanks. This is interesting, although remember this discussion is hypothetical. Thanks again.

Ron



To: Tokyo VD who wrote (5839)10/7/1998 12:14:00 PM
From: Dauntless  Read Replies (1) | Respond to of 7041
 
Ron & Tokyo,

That's the only number I've seen - but only on this thread. Assuming it's correct, and let's say it's worldwide, here's one way of looking at it.

From Zona's latest 10Q (with rounding),

Product sales $ 4M
Royalties $44
Total Rev. $48

CGS & Expenses $30 (22 is R&D)

Profit $18 M
EPS $1.50
x20 Multiple $30/share

My .02 is that this is conservative - 20 is too low for the multiple -other products in development could easily make it 40 instead of 20 - all this IMHO - just one way to look at it.

An aside, interesting that there was no doubt expressed about FDA approval.