Question-and-Answer Session
Operator
(Operator Instructions) Let’s begin with Donald Ellis with Thomas Weisel Partners.
Donald Ellis - Thomas Weisel Partners
Good morning, good afternoon. I might have just three questions. First one for Jonah and the second two for Mark. What milestones can we look forward to in ’08 and ’09 regarding your topical botulism toxin programs?
Jonah Shacknai
The work going on at Revance, our partner right now includes a lot of formulation work, a lot of dose ranging work and of course many of these activities take place in the clinic in human subjects. So I am not sure that we are prepared or they are to identify specific milestones for 2008 but suffice it to say that the projects at Revance are been very actively and well managed.
We are collaborating very closely on clinical planning and development and we look forward to demonstrating, now just, for the efficacy of the product in even larger patient populations that have been a given the drug previously but also having a real fine dosing work done. So that we understand exactly the right number of botulism type A units that should be used to create the right clinical effect safely in each patient.
Donald Ellis - Thomas Weisel Partners
Thanks Jonah. And the question is for Mark. First one is regarding your EPS guidance for 2008, $43 to $56. It seems like a pretty broad range. Can you tell us what is driving or rather increasing that EPS?
Mark Prygocki
There’s really two things, Don. The first is the $12 million between the spread of the revenue. Pretty much we have a fixed cost budget for the most part and I think the benefit in the EPS will really drive to the bottom, if we were to get to the higher ranges of the revenue scale. So I think that's where the first benefit is, if we achieve that higher end of the revenue scale, it will flow through to the bottom line.
The second is really the variable behind the weighted shares outstanding. And that is really dependent on the stock price. In the guidance, in the press release we put a range of anywhere from $71 million, if the stock price were to remain low, or if the stock price were to move up, it would go depending on how high it went up to around the $73 million share range. So it's really the combination and the variables of those two that create the EPS range.
- To read the full transcript on Seeking Alpha, click here »
