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ALL THE DATA IS IN THE READING! IF YOU CAN'T SPEAK ENGLISH FLUENTLY DON'T ANSWER THIS QUESTION! STOP FLAGGING MY QUESTION DUE TO YOUR LACK OF READING COMPREHENSION! 1. A. What was the percent underwriting spread? B. Subsequent to the issue, by what amount would earnings per share be diluted? Glazer Drug Company drug utilization. The generic industry has seen rapid growth since the mid-1980's. Accompanying this growth has been a Generic Drug Industry growing desire within the industry to challenge the legality of branded drug Generic drugs are the equivalents of patents in court, often enabling patents to brand-name drugs, typically sold under be overturned years ahead of schedule. their generic chemical names at prices Also attributing to the rapid generic growth below those of their brand-name id the appeal of Healthcare payers, such as equivalents. Generic drugs may be large employers like GM and pharmacy manufactured and marketed only if benefit managers (PBM) like Medco relevant patents on their brand-name Health Systems, to increasingly direct their equivalents have expired, been challenged clients to buy more and more generics. or invalidated otherwise validly circumvented. The Going Public Transaction Future generic industry growth can be attributed to both a large number of Glazer Drug Co. is the fourth largest branded drugs losing patent protection in generic drug company in the world, with the coming years and a strengthened desire annual sales of over $3 billion. It trails only by healthcare payers to increase generic or Norvatis AG, Teva Pharmaceutical, and Mylan Labs in sales and profits. Its home office is in St. Louis, with its laboratories and sales outlets in the U.S. and 30 foreign countries, with the largest foreign operations in Great Britain and Australia. Its generic brand labels cover medication for heart disease, diabetes, acute infections, and many other ailments. In the fall of 2012, the company decided to go public. Its investment banker was Aaron, Barkley, and Company. Glazer Drug Co.'s most recent 12 month earnings were $150 million with one hundred million shares, providing an EPS figure of $1.50. After conducting a careful analysis of the generic drug industry, the investment banker decided a P/E of 25 would be appropriate, giving the stock a value of $37.50. Allowing for the underwriting speed, the net to the corporation and selling stockholders was $36.68. The out-of-pocket underwriting expense was $2 million on the 20 million chares that were to be sold to the public. Ten million of the 20 million shares in the IPO were new corporate shares and the remaining 10 million were shares currently owned by Larry Glazer, one of the founders of the company. The 10 million shares sold by Glazer represented 85 percent of his holdings. On the day of the offering, the stock price shot up from $37.50 to $51.10 a share, and by January 1, 2013, the stock had reached a price of $61.75. Since no specific events involving the company had taken place, it appeared that the stock market had a favorable impression of the firm. ALL THE DATA IS IN THE READING! IF YOU CAN'T SPEAK ENGLISH FLUENTLY DON'T ANSWER THIS QUESTION! STOP FLAGGING MY QUESTION DUE TO YOUR LACK OF READING COMPREHENSION! 1. A. What was the percent underwriting spread? B. Subsequent to the issue, by what amount would earnings per share be diluted? Glazer Drug Company drug utilization. The generic industry has seen rapid growth since the mid-1980's. Accompanying this growth has been a Generic Drug Industry growing desire within the industry to challenge the legality of branded drug Generic drugs are the equivalents of patents in court, often enabling patents to brand-name drugs, typically sold under be overturned years ahead of schedule. their generic chemical names at prices Also attributing to the rapid generic growth below those of their brand-name id the appeal of Healthcare payers, such as equivalents. Generic drugs may be large employers like GM and pharmacy manufactured and marketed only if benefit managers (PBM) like Medco relevant patents on their brand-name Health Systems, to increasingly direct their equivalents have expired, been challenged clients to buy more and more generics. or invalidated otherwise validly circumvented. The Going Public Transaction Future generic industry growth can be attributed to both a large number of Glazer Drug Co. is the fourth largest branded drugs losing patent protection in generic drug company in the world, with the coming years and a strengthened desire annual sales of over $3 billion. It trails only by healthcare payers to increase generic or Norvatis AG, Teva Pharmaceutical, and Mylan Labs in sales and profits. Its home office is in St. Louis, with its laboratories and sales outlets in the U.S. and 30 foreign countries, with the largest foreign operations in Great Britain and Australia. Its generic brand labels cover medication for heart disease, diabetes, acute infections, and many other ailments. In the fall of 2012, the company decided to go public. Its investment banker was Aaron, Barkley, and Company. Glazer Drug Co.'s most recent 12 month earnings were $150 million with one hundred million shares, providing an EPS figure of $1.50. After conducting a careful analysis of the generic drug industry, the investment banker decided a P/E of 25 would be appropriate, giving the stock a value of $37.50. Allowing for the underwriting speed, the net to the corporation and selling stockholders was $36.68. The out-of-pocket underwriting expense was $2 million on the 20 million chares that were to be sold to the public. Ten million of the 20 million shares in the IPO were new corporate shares and the remaining 10 million were shares currently owned by Larry Glazer, one of the founders of the company. The 10 million shares sold by Glazer represented 85 percent of his holdings. On the day of the offering, the stock price shot up from $37.50 to $51.10 a share, and by January 1, 2013, the stock had reached a price of $61.75. Since no specific events involving the company had taken place, it appeared that the stock market had a favorable impression of the firm