News Focus
News Focus
icon url

jbog

10/21/10 9:30 PM

#106945 RE: Regulardoc #106941

Regulardoc,

I played between the lines using a blend of data from last years SEC filing which broke down many of the expense areas.

I came up with net profit being 50.5% of gross sales. The 49.5% in charges came from raw materials, marketing, administration, research and development, other income and other expense. Please note that there could be some changes in this period because of the initial product which might have been charged differently.

So using todays report I come up with a net profit in the area of $147.5 mil (292 x .505). Momenta's share, using a 45% royalty rate would be $66.6 mil. Now add to that $5 mil in milestone, $2 million in other sales and Momenta's total revenue would be somewhere around $73 mil.

We then have to subtract $18 million in general corporate expenses, and then we have to account somehow for what Momenta owes Sandoz. There is a possibility that they might have to book the whole charge right now because it is a known liability. If they do then no one has any idea of what it would be. If they only had to book the 50% of revenue portion, the charge would be anything up to $35.8 mil.
icon url

DewDiligence

10/22/10 1:34 AM

#106954 RE: Regulardoc #106941

Please see my reply to 'esimae' in #msg-55818120.