So, up front they are investing $190 mil, and getting sales that are tracking at $19mil for the first 1/2 of 2011...so say they make $40mil in sales, and it will reach max sales of $100 mil a year....that is not a bad deal right? We will say a 21% return on the $190mil the FIRST YEAR!!!! I would say that is acceptable ;-)
If the other drug gets approved, do you think CBST did the math? Do you think they know the potential income of the new drug?
In other words, they will be paying the cost of testing the drug in phase 3 trials.....if it does NOT get approved, they are out the trial costs, if it does, I am guessing they will make a LOT more then what they paid for the drug.
Not what I expected, but not a bad place to put some cash ;-)
Good point. How these new drugs fit into the pipeline CBST has, needs to be examined. I'd think the buyout is in a rush. The stock valuation wise is bit expensive IMHO, which is the main reason I bailed. I still like the company and will come back in later. GL