Projected Offering Expenses

2000 2001 2002 2003 2004

R&D expenses 27.5 42.5 38 44 54.5
SG&A 5 15 35 53 62
Total OE 32.5 57.5 73 97 116.5

income statement
2004 2003 2002 2001 2000 2000*
Licence & grant revenue 1000
contract revenue 303
total revenue 0 0 0 0 0 1303
research & development 54.5 44 38 42.5 27.5 10967
general & administration 62 53 35 15 5 1934
total operating expenses 116.5 97 73 73 32.5 12901
loss from operation -116.5 -97 -73 -73 -32.5 -11598
interest income 2557
interest expenses -8
interest net 0 0 0 0 0 2549
loss before income tax -9049
provision for income tax 0
net profit 0 0 0 0 0 -9049
assuming license n co
Revenue from Xcytrin 2005 2004 2003 2002
Revenue(USA) 680000000 442000000 289000000 34000000
COGS 136000000 88400000 57800000 6800000
Gross profit(USA) 544000000 353600000 231200000 27200000
Revenue(outside) 425000000 255000000 85000000

Gross Profit(outside) 127500000 76500000 25500000

total gross profit 671500000 430100000 256700000 27200000

Revenue From Lutrin

Contribution 20000000 9000000 3000000

Total revenue 451100000 266700000 31200000

total operating expenses 116000000 97000000 73000000
EBIT 335100000 169700000 -41800000
Add depreciation/amortization

·         Why is Pharmacyclics considering an equity issue in March 2000?

·         Forecast of after tax cash flows through 2002 assuming Xcytrin & Lutrin are approved, if not approved.
·         As of March 2000 how many future years of funding does Pharmacyclics have?
·         What funding strategy is apparent in Pharmacyclics pre-IPO financing? Why managers would want to follo
 Assumption(Xcytrin)
radiation treatment for brain met 170000 used perce 0.2
cost per treatment 10000
COGS 2000
used in USA 0.02 0.17 0.26 0.4
used outside USA 0.05 0.15 0.25

1999 1998 1997 1996 1995

750 2700 25 301 79
1291 831 0 0 0
2041 3531 25 301 79
21889 13973 9632 7641 9330
2762 1987 1905 1515 996
24651 15960 11537 9156 10326
-22610 -12429 -11512 -8855 -10247

0 0 0 0 0

0 0 0 0 0
1000000

Cash and Cash Equivalent 2000 61.164

expenditure 2000 32.5
expenditure 2001 57.5
-28.836
till mid of 2001

are approved, if not approved.

Why managers would want to follow this strategy? Does it benefit the investors too?