I read the entire thing today. On 2/18/10 they will release there 2009 Annual Report. Let me tell you, there is a lot of stuff in it that I found quite surprising. A lot more reasons as a Medafor shareholder I don't want to be acquired by CRY. The story is much worst than I thought. I may wait until after 2/18/10 before I comment in depth, but this is definitely not a marriage made in heaven. CRY is essentially two businesses. One business, tissue, is about a $52M (CY2008) non-profit business. Hear that folks. A non-profit business. Laudable and all that, but worth ZERO to shareholders. The other business is BioGlue, which is a nice high margin business, BUT BioGlue goes off patent in the USA in 2012, and in the rest of the world in 2013. If someone came after CRY's BioGlue market, CRY is a ZERO income company. Incredible really. CRY has serious pipeline and business structure problems. I suggest you all read the entire 2008 annual report. The link to it follows.
What a strange thing to say, non-profit business, only a true idiot could come to that final conclusion. It's against the law for CRY or anyone else to sell human body parts for profit. They charge for processing the body parts and freezer rental at the various hospitals, etc., and that's how the profit margin is derived, which is about 60% if I remember correctly. The BioGlue margin is closer to 85%. Other companies have already come after the BioGlue market, i.e., that's why it hasn't grown for many years. Someone please tell this person to quit writing and posting on the internet. All he or she is doing is giving an incredible demonstration of ignorance and stupidity.
Print page F-6, the 2006 thru 2008 Income Statement. Now focus on 2008, the most recent complete CY.
Business #1 - Tissue:
Preservation Services $53,656,000 Less Pres. Sevr. Costs -$29,112,000 Equals: Gross Margin $24,544,000 46% GPP Less: Related Oper. Exp. -$24,554,000 Equals: Net Profit -0- !!!
Business #2 - BioGlue: Product Sales $50,493,000 Less Related COSTs $ 8,153,000 85% GPP Equals: Gross Margin $42,340,000 Less Related Oper. Exp. $29,596,000 Equals: Net Pre-Tax Profit $12,744,000 reduced by taxes at 40% -$ 5,097,600 Equals: Net Protit $ 7,647,000 EPS assuming 28M shares $0.27
I said the "tissue business", over 50% of revenues, generates very little gross/net profit...making it essentially a non-profit product line. I suggest you read the annual report cover to cover. The profit really comes from the high margin BioGlue side of the house...but this goes off patent in 2012 (USA) and rest of world (2013). Idiots are those who do not do their homework. Idiots are those that do not read. Idiots are those that can not understand what they read. I suggest you read the 2008 annual report cover to cover...about 105 pages...perhaps below $6/share tomorrow...the lower it goes, the better it is for Medafor shareholders...darn I do need to sell my remaining CRY shares while they are still worth something...