They said they will be cash flow break even 2014 not considering the 59 million tax. This means that they will have 210 million cash by the end of 2014. If they are to acquire a company 200 million range, they have to do a secondary fund raise, IMHO.
it is 39 million tax benefit related to valuation the deferred tax asset. It could be real thing since it can reduce future tax liability. It said to be reversal though I am not sure where that comes from. My guess it is to do with the treatment of the royalty sale as debt financing so that interests payment becomes tax deductible but I am not sure.
It also said there will be 59 million tax to be paid Q1 of 2014 related to 2013 fiscal year activity. That is real money going out -- a dollar cash per share.
what is new in today's earning relative to the pre-released earning? I can see there is a 30 million plus tax benefit. Do you know what that is related to? Also, it says that there will be 50 million plus tax Q1 2014 for the 2013 sale of royalty. Not sure how that is computed.
It appears that the sale of royalty will be recognized as revenue amortized over a period of time while the difference between the recognition of revenue and the cash value of the royalty sale will be regarded as interests payment. Maybe that is counted as deductible expense for tax purpose, thereby resulting tax savings. It is still unclear to me how this becomes a huge positive given the fact that nothing else is new other than the approval of the new drug, which was known since this morning.
It is not a matter of how far it will drop today but whether the current price is a fair valuation of the company.
Do you think this company is overvalued or undervalued or fair valued at 700 million?
Minus the cash of 270 million. The enterprise value is 430 million.
One thing I am not sure is whether the cash on hand is subject to taxes at high 30%.
The current drug portfolio looks promising but there is no net profit yet. Licensing revenue is much lower than before.
The new drug is selling into a crowded market with restrict regulation. It will certainly contribute to profit but not sure how big it could be. It is a plus but not a game changer.
I don't know the previous agreement so I am just guessing here.
I believe the warrants give options to buy shares at certain price that is lower than the current price. So the warrant holders exercised the options and then immediately sold the shares afterwards to pay for the exercise price.
Essentially, AMD had just gone through a dilution without any cash injection. This is just a time bomb AMD buried 5 years ago and now just exploded. Of course, everyone saw it coming and it just makes the stock less profitable.
Thank you. Yahoo has posted several earnings calls for the previous quarter and none turns out to be true.
Depomed still hasn't posted this on its website.
In any case, I think the company wants to wait until it got notice from the FDA.
With so many similar drugs on the market, I wonder how big an impact would this approval have on Depomed. I counted at least 6 similar drugs that are already on the market or being close to it.
Where is the notice for tomorrow's earnings call? I looked at the company website and there is still none.
which companies face major pressure if this drug is approved? Purdue Pharma? Those who sell Oxycontin will see less income if this drug got abuse resistance label. However, I don't know if FDA would be so willing to give such a label while the mechanism of action (of abuse resistance) is yet unknown.
the stock has rallied over 100% in one year. The current stock price may have priced in the approval of the drug already.
If the drug is approved, there might be sell on the news crowd. If the drug is denied, you know the drill.
Frankly, I don't see much more head room from here. Even the most optimistic analyst didn't write a price target much over 12.
Abuse resistant or not, It is not a novel compound and copay could be problem for the sales.
The stock has had a very big run up since last year. Approval or not, the stock won't go up much further. Why wound't anyone just take profit and see what happens is beyond me.
These XR drugs are rarely big sellers. I never understand why so much hype on these kind of drugs. When the XR, ER drugs hit the market, the original molecules are almost always generics already.
Just by the size of the milestone payment, you can guess how big a drug Xartemis XR would be.