154,000 shares (buy back price paid $12.71 - $13.34, spent $2m on a single day. Well done JP!
It's possible the $50m buy-back program could be completed by end of this month. It's a strong sign sent by the board, imo.
DAYBUE is to launch in Canada; Europe is soon. Canada is a small market, but Europe is slightly bigger market than US.
For Europe and rest of the world, royalties are higher, mid-teens to low 20s, where US is 10-15%.
Also, potential milestone payments are up to US$427m, some of them are easy to be met.
Currently US receive annual royalties around $50m, if Europe were achieving a similar sales, those markets could contribute around $100m annual royalties.
Cash position as at 30 September 2024: $210m,
Two milestone payments: US$50m x 2 = $155m to receive in Q1 2025,
Less: Share buy back $50m
Less: Income tax (payable after Q1 2025) ~ $27m
Total cash position would be still around $288m after share buy-back and tax in March 2025, based on my estimate.
Plus US royalties say $17m per quarter, Bank interest ~$2.5m per quarter,
Last quarterly cash burn rate was around $18m.
I won't be surprised on annual reporting date, if the board to upsize the buy-back program or even to announce a dividend as income tax paid so franking credit can be utilise.
All imo.
NEU Price at posting:
$12.88 Sentiment: Buy Disclosure: Held
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