Additionally, once the BLA is accepted by the FDA they are able to capitalize commercial grade inventory under the pre-launch inventory GAAP rules (See the bottom of page 9 for cliff notes from Deloitte in the link below). NP has publicly stated this is $50M and expects it to be $100M by the end of the year......this is a little misleading as that is based on retails value when capitalization / asset value is based on cost.....so much lower. Regardless of the actual value this will have a couple positive impacts (for the sake of not speculating or trying to figure out what that value is.......but will be dependent on the actual value). It will improve their balance sheet to help meet up-list $4M asset criteria (currently negative $8-10M, but improved a lot with the IP from ProstaGene acquisition.....so we need to see how this plays out). Also, they will be able to use this asset for potential loan as it will be recognized as collateral once capitalized and an asset. Already mentioned was approval should be less than 6 months due to accelerated approval and rolling review.....which means revenues around the corner.
https://www2.deloitte.com/content/dam/Deloitt...opment.pdf
Please do your own due diligence. All my posts and comments are not to be considered investment advice.