Ariad Pharmaceuticals Inc fka ARIA

[jaybe]

Use this link to compare net profit margins...

http://finviz.com/screener.ashx?v=161&f=ind_biotechnology&o=-netmargin

Most bios in transition to a commercial operation see 35-50% profit margin. But you will find established big bio in the 25%-30% range. I think long term we will do better than 25-30%, based on fewer drugs, best-in-class safety/efficacy, and clearly defined patient populations. In other words our drugs will comparatively sell themselves.

So I've assumed a descending net profit margin range from 50% in 2014 down to 35% by 2020.

By the way I assume total sales of $250M in 2014 and $5B (includes $2.4B Pona, $2.2B '113, and $400M XYZ) in 2020.