With 950 Million dollars in cash and no debt, and Benlysta revenues expected to top 500 million in 1 year, it is highly likely that the company will start a share buyback program to reduce the number of shares. If they do not do a share buy back, they will likely end 2012 with 2 billion in cash and no debt.
That is a nice amount and that is a conservative number. Until the first person is dosed with the drug, they will have no idea what they will end the year with. I would rather them low ball us today. If 30,000 patients are lining up for the drug, at 40K, that is 1.2 billion dollars. 600 million will go to HGSI. The cost of the drug has already been expensed(with 1 Billion in inventory). So that should really mean the company will have 1.5 billion at the end of the year. We will find out soon enough.
Im not really sure why that matters where the stock was. The Chief Finance Officer isn't nitpicking the daily price moves. 18 months ago, the market cap was 80 million dollars. Yesterday, the company wrote a check for 50 million dollars. The CFO is running a 5 billion dollar company. He will end 2012 with 2 billion dollars in cash. The company is unlikely to announce a dividend, so the only thing to do is buy back shares. Company cash has nothing to do with stock price.