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Protalix BioTherapeutics, Inc. (PLX) Message Board

  • woodbarn woodbarn Jun 25, 2013 3:30 PM Flag

    Pfizer would have gotten around $12 million anyway that is assuming 60/40 profits split and 50% profit margin.

    Pfizer would have gotten around $12 million anyway that is assuming 60/40 profits split and 50% profit margin. $40 million in revenue would generate about $20 million in profits, assuming 50% profit margin. Under 60/40 profit split Pfizer would get $12 million and Protalix would get $8.

    So if Protalix can manage to get more market share, total is around $70-$80 million, Protalix has a chance to make more profits since Pfizer's profits are capped at $12.5 million a year. If Protalix can generate $70 million revenue, profit would be around $35 million, and Protalix would keep $22.5 million and Pfizer would get $12.5 million.

    50% profit margin was about the margin from previous short-term supply agreement with Brazil in 2010, figures are in Protalix's Feb 2011 10-K. In one quarter, Pfizer reported $21 million Uplyso revenue, and Protalix got 40% or $4.6 million profit. Total profit comes out to around $11 million. Product is relatively cheap, cost of product was around $800,000 and sold to Pfizer for around $2 million.

 
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