seriously vito. not much to talk about here.Market Cap 60...

seriously vito. not much to talk about here.

Market Cap 60 million.
Cash 13.5m

Your 45m gets you;
Net sales 54.6m
(last quarter growth 96%. Year average growth 57%)

NPAT 4.6m

Company was severely affected by the once-off write down of the GAPE exclusive supplier agreement. it probably had no small role in the steady decline of the SP. One off cost of ~18m. This was choking them as they couldn't reduce costs by sourcing from other generic suppliers. Now they've grown into one of the big generic companies new more profitable supply arrangements have been established.

The generic market is here to stay, and ad drugs come off patent, it's growing steadily every year to the dismay of big pharma.

The thing with PBS is the gap; PBS will only pay for the lowest priced equivalent. So if a brand name statin costs 35 and the generic costs 30; and you wanted the brand, PBS script will cover the lowest cost drug and then you add $5 to get the script.

Sometimes the differential can be a lot more. For this reason, generics are taking off as people are realising the price benefit from these drugs that are pharmacologically exactly the same.

Note: not sure of the exact stat, but approximately 1/3 of australians will under no circumstance buy a generic as they believe its an inferior product. A misconception, but one that needs to be considered when calculating growth of the generic industry.