ANI Pharmaceuticals (ANIP)

[nutsyprofessor]

Let's take this one step further:

Let's assume that the profit margin on these generics will be 20%. Thus 20% on the $64-$129 million revenue gives $12.8-$25.8 million in earnings before taxes and other AE's. ANIP currently has 10 million shares outstanding but let's assume that by the time all 31 generics are flowing out the door, they have 15 million shares outstanding. This would give an estimated earnings per share of $0.85 to $1.72. At this point it would be reasonable to get away from using the Price-to-book valuation method and instead use the Price-to-earning valuation method. Using the average PE of 25 for this industry would give a FUTURE estimated stock value of $21.25 to $43.00

I would bet that in ANIP's case it will be closer to the lower end of this range, UNLESS, something big happens with Libigel in which case all bets are off the table.