1) I get forward EPS of nearly $1 per share. The milestone...

1) I get forward EPS of nearly $1 per share. The milestone payment is worth AUD$75m by itself. That would be a PE of 17x, which is not much more than the general market.

2) I don't acutally care what PE ratio it is on right now because sales of Trofenide are not the main game. Fair enough if NEU was a mature company with no options, but NNZ2591 will add another $1 or $2 EPS down the track.

3) Many other biotechs at the same stage (with $0 sales) have been taken over at prices upwards of US$5b-$7b. So a market cap of $2b now (with bonus sales revenue) is cheap.

Ironically, if NEU had no sales at all, it might be trading higher than it is now (no anchoring bias). Trofenide has just given something for the market to focus on, rather than looking at the future potential.