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alertmeipp

12/23/11 12:13 PM

#133704 RE: iwfal #133703

I think your 20% is low, but 280m is ~5 bucks eps to the bottom line.
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DewDiligence

12/23/11 12:30 PM

#133707 RE: iwfal #133703

Your 20% figure is not even close, IMHO. Provided that an interchangeable Humira FoB hits the market around the same time as non-interchangeable FoB’s, the non-interchangeable products will likely be non-factors in the marketplace and the sole interchangeable product could take half of the overall volume.

If price erosion for the brand and the interchangeable FoB comes to 20% and the gross margin relative to the monopoly brand is reduced accordingly, the net profit for the sole interchangeable FoB is at least 35% of the pre-existing profit for the monopoly brand.