Replies to post #2728 on Catalyst Pharmaceutical Partners (CPRX)

[SmurfVA]

Hooks88- you still okay with yesterday's pps move? What's your opinion on info below:

Shares Outstanding = 42M $. Annual sales of Firdapse = 80M $ (Company expects 200-500M$). Market cap = 4 X annual sales = 320M $ (generally orphan drug companies have MC = 6-8 X annual sales). That gives a PPS of 7-8 $. Since company will need further cash for marketing and commercialisation if approved (max. 20M $), it will lead to dilution. Assuming the current PPS that means 14M more shares. Hence the diluted PPS = 5-6$. So even on a very conservative side this stock should increase 3X. And remember the real gem of this company is CPP-115. You can do the math if you would have taken the upside and CPP-115 into account.