Biotech Values

[DewDiligence]

Glatopa’s operating margin subject to profit-sharing by MNTA won’t be as high as 80% because of the contractual amount NVS levies for selling expenses (irrespective of how much NVS actually spends on selling) is probably at least 20% on its own.

Moreover, COGS will initially be fairly high as the fixed costs of production are spread over the relatively small revenue base.

For 2Q15, I estimate that the Glatopa operating margin will be 55%. Applying this rate to the $70M estimate for sales and dividing by 2 gives about $19M for MNTA’s (pre-tax) take.