research reports and media, page-694

He's throwing out a figure of $20 as the 'E' in P/E ratio. Multiply $20 by the PE ratio to get the SP. Most mature pharmas have an average payout ratio of 40-45%. So if the EPS was $20, the dividend would be $8-9 for that financial year.

I'm pretty sure he left out the distribution cost out of the calculations though. PAR's earnings would be approx 50% X {royalty% from distribution partner}. If our distribution deal was 50% royalties (high but achievable), we would still need to halve that $20, so $10 EPS. If only 25% royalties then $5 EPS etc... $5 EPS would still be great though. Multiply $5 by 34 PE ratio you get SP $170!!