Post by
FormerHedgie on Aug 27, 2024 10:28am
An "unusual" but strong Q2
Like others, I had been waiting for this announcement for some time. It was unusual that the quarter was reported so late and the dividend announcemet came out before the quarter. It is like there is a new IR person / process at Biosyent.
Regardless of these oddities, the quarter was strong. Anytime a company reports record revenues is always a good thing. Double digit revenue growth was positive. I appreciate that the company has additonal startup costs as they invest in the growth and launch of new products.
It looks like their SG&A costs were around 300k higher that the previous quarter which they attribute to growth and new product launch costs. This translates to about $0.03 / share of EPS which is meaningful in the context of quarterly EPS of $0.136 (~20% of lost EPS growth).
I was happy to see some additonal comments about the endocrine product (I believe to be Zofenopril a high blood pressure medicine with cardio-protective benefits). Once launched, my analysis suggest that this drug could double RX's share price within 4 years with modest market up take. Refer to early post ( https://stockhouse.com/companies/bullboard?symbol=v.rx&postid=36119819 ).
Overall, while an "unsual" quarterly release process, it was very encouranging. There is always the chance that they may have been working on some announcement that they wanted to release with the quarter which caused its delay.
Perhaps we will see some good news imminently as they couldn't wait any longer to release the quarterly results.