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Vertex Pharmaceuticals Incorporated Message Board

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  • thirdmeinvestor thirdmeinvestor Aug 3, 2012 11:44 PM Flag

    Value of Kalydeco

    I was implicitly suggesting that the revenues from Kalydeco is effectively equal to the net profit for the company because the revenues from Incivek/Incivo alone is sufficient to pay for the total expenses for the next couple of years. CEO indicated that the SG&A cost will be adjusted at the end of this year if Incivek sales further decreases.

    For Q2,

    R&D expenses were $196.5 million
    SG&A expenses were $117.5 million
    Total expenditure = $ 314 million

    On the other hand,

    Net product revenues from INCIVEK were $327.7 million
    Net product revenues from KALYDECO were $45.5 million
    Net royalty revenues were $33.5 million
    Total revenue = $406.7 million

    Excluded from the total expenditure above is the one time charges of $56.2 million related to an increase in future payments under the Alios collaboration and a $78.0 million in cost of product revenues to reserve against the potential for excess INCIVEK inventory.

    By Q1 2013, I am certain that the revenues from US, Canada, and EU for the sales of Kalydeco will be 100 million, doubling the sales for this quarter. The sales will double again for 2015 year. If you believe in the PEG = 1 valuation measure, G, the growth rate has to be more like 100% not 15% I assumed earlier.
    Alexion Pharma earned 18c (GAAP) this Q, but look at today's closing price.

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