Thought i might do some rather blatant ramping (sorry, but it is) by looking at QRXs potential revenues at certain sales volumes... feel free to chip in anyone.
What we know: - tiered royalty on sales of 10, 20 and 30% - 25% of remaining profits if QRX provides 25% of the selling capacity Assume: - sales force costs 30m per 60 people - low costs to manufacture goods
While management are talking peak sales >US600m even sales of 250m result in about 60m in revenues to QRX. Assuming 30m pa for trials and general costs there should be enough to start paying a pretty good dividend. SRX are paying out about 5m in dividends currently and they have a MC of over 600m. If we get approval without damaging label restrictions, thats where QRS is headed in the next 2 to 3 years. But there is the matter of that FDA approval to get past first...
QRX Price at posting:
75.0¢ Sentiment: Buy Disclosure: Held