I just want to provide a somewhat ill fitting comparison - i am just looking numbers wise, specifically around market caps, not the business obviously. But i will compare with Fortescue Metals.
If we say that the OSA drug earns $5 billion a year revenue (quoted from the article) and a profit of say $4 billion (small COGS its a pill from common ingredients). We can compare that to Fortescue Metals FY21 boom year (iron ore was high). Last year Fortescue has a profit of $10.2b and they have a current market cap of $55 billion.
Seeing as the above example we are basically 40% of the profit of Fortescue just off the OSA drug, if we apply 40% to a $55 billion market cap we get $22 billion. That is just on the OSA drug.
That is a multiple of more than 36 times our current market cap and therefore share price. In this example that gives us an $18 share price. There will be dilution no doubt with future capital raises but still if we estimate $8-$13 off the OSA drug alone i don't think its unrealistic?
Please note this is a COMPLETELY different industry i just wanted to compare potential profit numbers with market cap.
This is purely hypotheticals and just to provide some perspective on that $5b revenue potential from OSA. I can't wait for the trial results early next year.
Good luck all.
IHL Price at posting:
49.0¢ Sentiment: Buy Disclosure: Held