According to the Seeking Alpha article, Vosaroxin's future sales will be $400m-$600m. If this comes true, let's take 70% as the average profit margin for drug sales, the total profit/year=$600m x 70%=$420m/year, and let's assume that future diluted shares will be 60m(44m right now) and take PE 20, then SNSS future
What pps should this stock be trading now?
Let's assume that this drug has 50% of chance of getting FDA approved, pps cuts down to $140/2=$70. And it will take another two and half years to complete. Subtract 20% from pps for each year waiting, then present pps should be trading: $70x50%=$$35
Yes, SNSS should be trading around $35/share right now.
Boy... I say Boy... You have lost your cotton picken' mind...
I wish biotech investing worked like this. If so, I'd be having dinner with Warren Buffet, and by that I mean, he'd be cooking me a steak dinner while I enjoyed a vintage bottle of Chateauneuf du pape.
I love Sunesis, but we all know that its all a sophisticated way to play Roulette. We all know with every bit of our hearts and soul that its going to hit number 13. It's just a function of how big your coglioni's are.
happy Friday fellow Biovegas friends of mine.