Intellipharmaceutics International Inc. (IPCI)

[AngeloFoca]

IT'S INEVITABLE ! ! !

The following assertions do not include Focalin XR because it does not fit the pattern of the other drugs, nor does it include Coreg because it has not yet been submitted, nor Ranexa that we do not know enough about... yet.

The aggregate market for the other 7 XR generics in the IPCI pipeline is $5.657 BILLION. (I scaled down Seroquel XR from $1.2 billion to $760 million market which is the course Focalin took when it went generic)

Some of those generics have MANY distributors... for instance Glucophage has 18, but most others have only around 6.

What I'm using is a mere 5% penetration, which should feel low enough for everyone to accept, and a 20% royalty payment, which I think is well below what they will probably get because the FDA approval was totally self-funded, with the exception of Focalin which was funded by PAR... and this is what I come up with.

$5.657 Billion market X 5% penetration = $280 million market share for IPCI and partner x 20% IPCI royalties = $56 million to IPCI divided by 30 million shares = $1.86 X 12pe = $22.32 per share on generics alone!!!!

Now I've used the $1.86 as earnings rather than revenue because the cost of goods and operations will be covered by the PLUS in the cost PLUS... and of course there will be money spent on research and such but that of course goes to add additional value to the company's speculative value.

The above figures should be acceptable to even the most skeptic here... as for me... I believe penetration could be as high as 10%, and royalty payments are at least 30% or possibly 40%, and p/e ratio are usually as high as 20% for a growth company... which could equate to as high as:

$5.657 Billion market X 10% penetration = $566 million market share for IPCI and partner x 40% IPCI royalties = $226 million to IPCI divided by 30 million shares = $7.54 X 20pe = $150.80 per share on generics alone!!!!

No... I don't believe the second set of numbers because nothing that good could possibly ever happen to me... LOL... but I do believe it will be higher than the first set of figures.

They will build it... you should come!!!

20K shares today makes you millionaire in 3 to 5 years ! ! ! or less ! ! !