npat & valuation, page-72

GDelaney, here's your earnings based on a per unit cost of production.

To allow for the reducing per unit cost of production as production increased i assumed:
- cost of producing the fist 2m is equal to 40m or 19.50USD/unit
- every subsequent unit is produced at a cost of 5m per 1m units (half the rate for the first 2m units)

I also added in a second ANDA from 2015 which impacts both volume and price.

I didn't factor in benefits from improvements in the manufacturing process.

Despite this being worst case scenario we still get good earnings.

The DCF valuation is:
- 65c per share which includes a 50% discount to terminal value to allow for a third ANDA appearing in 2017.
- or 101c per share assuming NO third ANDA and a 15% discount on terminal value.

If anyone wants to see this with different values let me know.