Today I discover ACR with strong cashflow and a great turnaround.(Many other registered shareholder may laugh at what i say)
But I think I am late.
Considered the upfront$50m, $87m for FDA marketing authorization and the $3m assets transfer are on-off transaction from Lilly, the yet-to-identified $195 milestone payment is uncertain.
If we consider $195 as the total annual payments from Lilly(because it seems 195 is the only left money ACR can get from its baby Axiron), divide $195 by 15 years(the patent for Axiron expires at 2026 which means there are 15 years left). ACR can receive $12m per year which just breaks even its 4-year ave development and operating expenditure which is at least $11m.
I am not saying ACR cannot develop another great drug in the coming years. People who became shareholders since Auguest 2010 should be very happy. But as to the price $3.70 with P/E only 11 today, I am cooled down much more compared to the first glance on ACR earlier today.
ACR Price at posting:
$3.71 Sentiment: None Disclosure: Not Held
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