Biotech Values

[Rocky3]

Revenue was $38.1M, of which $23.1M came from royalties and $15.0M from a milestone payment for Mavyret approval in Japan. GAAP EPS was $0.59.

Cash at 12/31/17 was $297.5M.

Gross operating expenses were $23.7M—well below the FY2018 quarterly guidance range of $30.5-34.5M.

(1) Royalties were less than gross operating expenses.

(2) Operating expense guidance was for the year ($112-138MM), so the next three quarters will have much higher expenses, unless guidance is changed.

(3) As pointed out the royalty rate is currently about 4.5%, much less than my assumed 5.5%, let alone touching the next level.

Need to hear what info is in the call.