Agnost. 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.
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.