Nuvo Pharmaceuticals Inc NRIFF

RE:P2% Scripts versus Sales

[consultant99]

According to the Horizon earnings release P2% revenues were 24% lower for Q1 2017 vs Q1 2016.

The April 24th Pharma presentation shows average total bottles per week in Q1 2017 were down versus Q1 2016 - but only marginally. Eyeballing it I would hazard a guess of about 6% lower.

So Schaffhausen I agree with your point that Horizin's lower revenues doesn't necessarily translate into direct step lower revenues for Pharma. Further because there are inventory builds and rundowns even lower bottle sales might not translate into lower sales to Horizon.

In my opinion here is the bottom line:

P2% sales in the US peaked in Q2 2016 and year-over-year sales in Q1 2017 were lower than Q1 2016. (Have P2% sales flattened out?)

Pharma is a one trick pony with the bulk of its revenues tied to one market and one customer. Failure to diversify sales revenues or expand sales of P2% outside of the US has put a cap on the share price. (No idea when the company will sell the remaining ROW rights, what they will get and when sales from India and Russia will start to add to revenues).

Pharma's expenses have increased reducing profitability.

Capital investments at the Quebec facility have reduced the money going into cash on hand.