abn amro moves to buy, page-34

Moreld,
Good analysis. Some adjustments required for the "Sub royalty" expenses.

I dont think we have sufficient public information to put an accurate figure on the sub-royalty expense other than knowing the expense will increase with the Relenza royalty income.

A rough GUESS perhaps may be implied from the 2008 and 2009 figures.

2008 royalty: $20.544m subroyalty expense: $1.936m
2009 royalty: $45 m subroyalty expense: $4.22m

Thus at $105m subroyalty could possibly be $10m??
At $148.75m ; subroyalty coul possibly be $14 m??
At $201.25m; subroyalty could possibly be $19m ??

The above assumes the subroyalty is linearly proportional to royalty income - is it?

You used 174.9 m shares on issue for EPS. Would it be more appropriate to use the weighted average no of shares of 176.2m or perhaps the diluted shares of 176.5m?
Or at the current rate Peter Cook and his mates options are awarded and converted, the diluted shares will probabbly be 178 million for the 2010 accounts!