Assumptions for Valuation with PromarkerD...

Assumptions for Valuation with PromarkerD Commercialization:

1. Market Penetration and Revenue:

   • Total Addressable Market (TAM): In the USA, there are approximately 32 million people with type 2 diabetes.
   • Adoption Rate: Assume a conservative adoption rate of 5% over the next five years.
   • Revenue per Test: The test price is set at USD $390.75 (as per the CMS reimbursement).

2. Revenue Calculation:

   • Yearly Tests: Assume each diabetic undergoes the test once per year.
   • Annual Revenue: 32 million * 5% * $390.75 = $624.96 million in annual revenue from the USA alone by FY29.

3. Profit Margins:

   • Assume a net profit margin of 20% due to economies of scale and operational efficiencies.

4. Price-to-Earnings (P/E) Ratio:

   • Assume a P/E ratio of 25, reflecting the high growth potential and market optimism.

Financial Projections:

Revenue Projections from USA:

• By FY29: A$624.96 million (approximately USD $390.75 million with an exchange rate of 1 USD = 1.6 AUD)

Net Income Projections:

• Net Income: 20% of A$624.96 million = A$124.992 million

Fair Share Price Estimation:

• Projected EPS (Earnings Per Share) in FY29: A$124.992 million / 100 million shares = A$1.25 per share (assuming the number of shares remains constant).
• Fair Share Price in FY29: A$1.25 * 25 (P/E ratio) = A$31.25

Conclusion:

If PromarkerD gains commercialization in the USA and achieves the projected market penetration and revenue, the fair share price of Proteomics International Laboratories Ltd (ASX: PIQ) could potentially reach around A$31.25 over the next five years.

This estimate assumes successful market penetration, consistent adoption rates, and no significant operational hurdles. Real-world factors such as competition, regulatory changes, and market acceptance could affect these projections.

LLM manifestations