Replies to post #16940 on Intellipharmaceutics International Inc. (IPCI)

[Amigo Mike]

Yes Fabius,

However that $20 million in royalties ..... IF PROFIT TO BOTTOMLINE, requires taxes to be paid ...... and oh BTW, that assumes no other development activities that we know need to happen. How will new development and clinical trials of other candidates be paid for ??? Maybe Rexista II is paid in whole or in part by partner on Rexista I, but Regabatin ??? Cost to develop has to come from somewhere.

So that assumed $20 million won't make it to the bottomline on a straight-through basis unless IPCI finds someone else to pay for upcoming R&D.

Don't understand why everyone is simply ignoring the expenses associated with the R&D of other product candidates. It costs money and ALOT OF IT to develop a new drug candidate as compared to a generic formulation.

I am not saying the stock price won't be much higher. It very well should be. But can't make straight line price estimates without factoring in more than just potential revenues.

Focalin revenues are royalty payments are they not ???? You don't see that on the earnings line today do ya ?? Because that money is going towards the expenses associated with the development of additional candidates.

PE is PRICE TO EARNINGS..... not PRICE TO REVENUES or SALES which is what I am seeing estimated. Very different ratios.

Amigo Mike