Nov. 15 at 1:35 AM
$KURA • If the market believes Kura can reach (say)
$1.3 billion annual sales, then using typical biotech valuation multiples (for an approved therapy, growth potential, partner risk) you might see valuations of 5-10× peak sales (or more for very high growth drugs) depending on margin, franchise potential, pipeline, risk.
• If Kura’s share of the
$1.3 billion is, say, 50% (after partner/royalty split) that’s ~
$650 million in revenue. If margins after cost-of-goods, SG&A, R&D are ~30% (just for illustration) then net profits of ~
$195 million. Valuing at, say, 15× earnings gives ~
$2.9 billion market cap.
• Alternatively, if market uses a simpler “sales multiple” of 6× to the
$650 million revenue = about
$3.9 billion.
• Kura’s current market cap (based on share price ~US
$11.20 per share) is much lower (the finance tool shows ~
$11.205 share price) but likely below the potential value if the drug performs well.
