Goyo,

I think that he's talking 2018.He's saying MNKD will be a $24 billion company with 32 million patients.

"Either way, we will calculate its share price using 550 million shares to factor in any possible dilution. $24 billion / 550 million shares is $43.64 per share."

-------------------------------------------------------------------------------------------------------

"So if every 6 finishing lines can serve 1 million people annually, a capital investment of $1 billion could produce 60 finishing lines at $8-9 million each, with half a billion left for costs. This would serve 10 million people. If MannKind comes to agreement with a partner this year, and we think it will, it's possible that in 2015, these new production lines could be functional, especially given that MannKind already has a working blueprint.

If that happens, and it can expand from there at 50% per year until it reaches its 32 million patients, it looks like this:

2015: 10 million

2016: 15 million

2017: 22.5 million

2018: 33.75 million

Gross margins are usually high for patented prescription drugs. Generally, a licensor of a high margin product could expect to get up to one-quarter of the revenues from the licensee. Let's be conservative and model 10%.

So, if MannKind agreed to a partnership, and had 10% of sales kick back as its own revenue, that is $6.4 billion in annual payments from the 32 million patients.

That has to be taxed, and there are expenses for MannKind's business, but most of that royalty should hit the bottom line. Let's be conservative and say 25% of that is net income, earnings are then $1.6 billion annually. With a P/E multiple of 15, that makes MannKind a $24 billion company."