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Tapestry Pharmaceuticals, (TPPH) Message Board

  • seabiscuit505 seabiscuit505 Aug 7, 2003 9:38 PM Flag

    The spotlight is on the gross profit #

    All eyes should be focused on today's press release on NPRO's gross profit both for the 3 month and 6 month period.Note a gross profit of appoximately $3.5 million in each period(Appox. $7 million for 6 months).Improved yields on the paclitaxel manufacturing process are somewhat impressive.NPRO is running at a gross profit run rate of approx $14 to $15 million per year from existing operations(before growth from eventual European contribution in 2004).So add in another $15 million in gross profit for eventual Europe commencing in 2004 and what do you have? You have an interesting acquisition property to a generic buyer.As as a bulk supplier of raw paclitaxel ingredient to a larger generic player this could add a $30 million gross margin profit on a worldwide basis to the buyer for the next 7 to 10 years.The business could also grow organically especially if established players like BMY or MYL drop out.This business will sell therefore for $65 to $80 million US to a strategic generic company like Teva or Mayne who will fold it in to the existing infrastructure.At $1.20 this stock at $40 million valuation is a bloody steal as a restructuring play.I agree with Brian the football player

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