PYC - General Discussion, page-347

You are right @travelbug2 The exact no. of shares on issue is 4,666,083,409. This is the official figure quoted on the ASX web site https://www.asx.com.au/markets/company/PYC



This is a very important figure as any projected earnings divided into it would yield an estimated EARNINGS PER SHARE. Large numbers in the billions are hard to comprehend, but everyone would want to see what it does to the share price!

Earnings per share (EPS) is a company's net income divided by its outstanding shares of common stock. Net income is the income available to all shareholders after a company's costs and expenses are accounted for. The formula uses the average outstanding shares.
https://www.investopedia.com/ask/answers/070114/what-formula-calculating-earnings-share-eps.asp

For example, the RP11 drug has a target market of US$1b, or A$1.5b (approx @ 0.66 exchange rate). Divide this by the total no. of shares on issue:

1,000,000,000 ÷ 0.66 ÷ 4,666,083,409 = A$0.3247 or say 32c per share less any on-cost

Assumptions:

1. Exchange rate remains at or around 0.66
2. Retail price of the drug is > US$100K per patient per year (other similar drugs are fetching $150-250K)
3. Production / Marketing / Management and other on-cost of drug < US$10K per patient per year
4. Net income would be @ 90% of income, making the EPS at around 29c.
5. Reaching the full target market may take some time, but sales to outside of US could more than compensate for the take-up rate.

The positives:

1. Cost of Production / Marketing / Management would trend lower when sales is ramped up.
2. The US$1b target is only for the US region which is only 7.5% of the World's population. On top of that they would market the drug to Asia, Europe, South America and Africa. The rest of the world could be 12X that of the US market. Even say at 1/4 of that, you would be looking at an additional income of US$3b, increasing the EPS from 29c to $1.16. Although they may have to sell it cheaper in some countries, the massive population would bring appreciable returns.
3. There is no competition, and the drug is protected by patents for 20 years. https://www.pfizer.com/news/articles/7_faqs_about_generic_drugs#:~:text=Most%20brand%20drugs%20are%20developed,generic%20version%20of%20the%20drug.

https://en.wikipedia.org/wiki/List_of_continents_and_continental_subregions_by_population

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