awg, that is not quite correct. Even if Biota receives similar royalties for the next 3 years, the ROE will decline. Biota will likely retain quite a bit of equity, as they have indicated, to reinvest into new product development/commercialisation.
The retained earnings will lift their equity base. Therefore, even if they earn the same royalties/net profit, it will be spread across larger equity base meaning lower ROE.
for what it's worth, page-8
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