Biotech Values

[DewDiligence]

(MDCO/HSP/EGRX)—US Appellate Court partially reverses District Court ruling in Angiomax patent case:

https://drive.google.com/file/d/0BxjrOnS1CwM1NzIyZGtfaENEWWM/edit

The above ruling opens the door for the US launch of generic versions of MDCO’s regular formulation of Angiomax.

For EGRX, which is -6% today, the ruling has both negative and positive consequences. The negative element is that EGRX’s ready-to-infuse (liquid) formulation of Angiomax, which is currently under FDA review (#msg-113852714), will presumably come to market after generic versions of the regular (lyophilized) formulation have flooded the market and caused price erosion. The positive element (which investors evidently think is less consequential than the negative) is that MDCO might be interested in licensing EGRX’s formulation of Angiomax in order to retain a premium-priced differentiated product, which has time-and-reliability advantages versus the regular (lyophilized) Angiomax formulation for healthcare workers in the cath lab that may benefit patients during a emergency PCI procedure.

I do not understand why MDCO is +6% today.

HSP, which is being acquired by PFE for $90/sh in cash, is unchanged today (as one would expect).