RE:RE:RE:RE:February Presentation Well stated AP
Of course the EBITDA figures (estiimated by Spectral) contain Baxter's cut (ie they factor in the distributor share.) as well as royalties back to Toray.
The good thing about Spectral's EBITDA numbers is that it likey represents almost pure profit. Marketing, distirbution, sales personnel, etc. are all costs that come out of Baxter's cut as the exclusive distributor. Not much left for Spectral to incur except some minor overheads (relative to the top line)
But of course Baxter would be licking it's chops anxious to take over Spectral's share of the profits in the future, in return for a rather large upfront payment, one would expect.
MM
PS,
The margin split has not been disclosed and is likely a conservative figure (knowing them - but just a hunch).
In addition, I'm not sure that the revenue numbers won't be much larger, and result in a higher absolute or % margin to both sides. This might come from one or more of the following areas:
- higher per column price commanded by a higher absolute mortalitiy benefit (than was calcuated under Euphrates). Will be set post FDA approval likely.
- the fact that many studies have shown that a large subset of PMX treated patients benefit from a 3rd (maybe even 4th) column in cases where the source infection may be stubborn (persistent endotoxemia until the source of infection subsides)
- wider label/use of PMX for other afflictions (e.g ARDS), perhaps EAA's .50 to .90?
- perhaps use >.90 once dosing is adjusted (e.g more filters or higher capcity filters for those over .90)
- etc.