12:1 & future profits?, page-11

Hey Red Ace, I think the 1ml and clinical range will be lower margin to stay competitive and the RTFS has a lot more margin in it due to the benefits of use.

From the report:

NEW PHARMACEUTICAL AGENTS. The Introduction of biological therapies for such diseases as arthritis and multiple sclerosis has increased the demand for prefilled syringes over the past decade. These drugs are expensive, which makes prefilled syringes an appealing alternative to vials that can result in up to 20% of their contents being wasted through inefficient transfer to a delivery device. As a result, demand has outsripped supply, which has left many drug companies seeking new sources, particularly for compounds in clinical trials. Over the next decade, demand for prefilled syringes is only going to accelerate, given the number of monoclonal antibodies and other injectable therapies now under development worldwide.

I don't know so much about 50% margin but I remember them saying that the 400m units would fetch $400m and gave the company $130m EBITDA, obviously for the smaller amounts of 40m and 100m units the margin could be greater and the Griffin Report suggests this also. As you point out the Griffin Report says Gross Profits on these could be 42% increasing to 50% RTFS, 1ml = 38% - 43%, I hope they achieve that but I will use the other for myself and anything over it will be a bunus.

Did anyone notice that they talk of a PE of 34x in their DCF valuation for the 2014 earnings, got to love the way the US rates their stocks, we'd be lucky to get 15x imo.