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I'm struggling with the numbers here. Mylan pays $300M for...

  1. 1,858 Posts.
    I'm struggling with the numbers here.

    Mylan pays $300M for Arixtra brand + AG. Total sales last year were $114M

    Total RDY sales were reported by ACL as $35M for 32% of market by volume. Sales were skewed towards the more profitable retail end, but without the profitable branded version. Aspen/Mylan sales appear much higher than those reported by RDY/ACL, allowing for sales volume %. We seem to have only 23% sales by $ compared to 32% sales by volume.

    ACL profit share last year was $9.5M, suggesting total profit as $19M (50:50 share). If profit was proportional to volume share, Aspen/Mylan profit would be $40M. $300M purchase price sounds very high for $40M pa return, especially for a shrinking market due to oral drugs.

    In view of the Mylan purchase price, are the profit/sales figures received by ACL realistic? Or is the fonda asset worth more than first thought.
 
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