Replies to post #232773 on Amarin Corp Plc (AMRN)

[Jeffkad]

The reality is the calculations can be as detailed as projecting every year revenue as it ramps, doing NPV by year, creating total NPV as per ramp, and applying discount rate to get to target internal rate of return, which is likely 8-10% in BP world. Or, they can chuck all that and say let’s just buy us some revenue lol, and where else can we buy 15B-20B in net revenue (giving some leeway that margin is 80%+) within 10 year window. So what if it’s not our target 8-10% IRR, it’s still a shitload of money we can reinvest to try and create other plays. And to your point and mine, they’ll put out a PR with made-up numbers that justifies the buy, and nobody will really ever know (who’s ever gone back and looked at individual BP acquisitions years later to see if they really panned out?)