Apr. 22 at 12:38 PM
$NBIX trades for a market cap of
$10B at
$100/share. NBIX is profitable & has
$2B in cash so its enterprise value is just over
$8B.
By comparison,
$ITCI was acquired by
$JNJ for an enterprise value of
$13.6B.
NBIX generated 4X more in product sales than ITCI in FY23 & FY24 and at higher gross margins. NBIX is expected to generate 1.3X more in revenues between FY25 & FY34 than ITCI.
If NBIX was acquired at the same multiple of cumulative 10-year projected sales as ITCI, this would be an enterprise of roughly
$18B & a market cap of roughly
$20B (double where NBIX trades today). Because NBIX generates a higher gross margin than ITCI, it could be argued NBIX warrants a higher multiple.
The attached graph compares actual FY23 & FY24 NBIX revenues v ITCI as well as 10 year projected revenues.
$XBI
This is not investment advice. For all we know, NBIXC projected revenues are inaccurate.
