Biotech Values

[DewDiligence]

PFE – Start with the roughly $12B in annual worldwide Lipitor sales and:

—Multiply by 0.55 for the US portion
—Multiply by 1.7 to convert to a 20-month period
—Multiply by 0.45 for the cash profit margin (gross margin net of selling expenses and taxes but excluding R&D, D&A, and corporate overhead)

You get about $5B of incremental cash with which to pay the dividend or use for other purposes.



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