...look at Cipher pharma, the Canadian company that licenses Absorica to Ranbaxy. It produced about $.12 cents in earnings in Q2, has other drugs being marketed plus one in the pipe, no debt and lots of cash on hand to acquire others. At a price of $7.58, it has an underlying p/e of less than 16 and that's not considering the considerable cash on hand. Also, Q2 earnings were based on an average quarterly Absorica US market share of just over 11% (now about 15% and rising quickly). Also, the company is just starting to market the drug in Canada via its own sales force and has the rights to other jurisdictions. By the way, the drug Absorica replaces had a US market share of about 75% and Absorica is clearly superior to its generic rivals (based on an earlier related formulation). This is a better play on the success of Absorica than Ranbaxy and the company is still dirt cheap.
