Abobo, You may be confusing earnings with revenue there mate.
For earnings of 53.6cents, this is NPAT. So 53.6/0.7 = 76.57 cents per share gross profit. For 175 million shares, this equates to 134 million profit. Then you have to take into account cash-burn of approximately 30 million.
So that would indicate revenues of approximately $164 million. 164/7% royalties = $2.34 billion in sales. I will assume selling price of $22, to account for donations & lower prices for certain countries. At $22 per does that equates to sales of 106 million doses.
Personally, I won't assume that GSK can actually sell all 190 million doses pa. I also assume the rotocap/rotohaler device capacity will only be available for 2 years. Therefore, I am suggesting that between 100-140million doses pa is around peak production. Fantastic if this is proved in hindsight to be conservative.
I own BTA, therefore I am biased. DYOR
BTA Price at posting:
$1.87 Sentiment: LT Buy Disclosure: Held
