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This is a strange one. A quick overhead doesn't seem to cut it. Why are revenue estimates increasing while EPS estimates are plunging?

2007 rev: $203.8MM EPS $1.21
2008 (est) rev: $242.9MM EPS $0.99
2009 (est) rev: $257.9MM EPS $0.56

Are they making some major investments or something what is going on?


It could be that they are expecting increasing expenses with their drug in Phase III trials. These can be very expensive because of the number of patients involved (usually a few thousand). The trial will probably end in 2010 or 2011, at which point the EPS will go back up (assuming their other two drugs continue to sell).

Dave
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