Biotech Values

[ghmm]

I actually didn't think the deal terms when they signed it were terrible. Till the S-1 the royalty rate wasn't clear and that I thought was a bit low. Getting the leader in the space as a partner though was a big plus.

What deal I thought was terrible was their CF deal.
1. They had said they were going to go at it alone in CF.
2. CF is an area where they could really go at it alone.
3. The asset was quite early and relatively cheap to develop further.
4. The upfront terms were not significant enough to me to warrant reducing the risk. Additionally on the back end the royalty rate was not high enough to give sufficient upside.

The only possible saving grace for partnering with Abbvie in CF which I do not know is if Abbvie contribution including meaningful compounds/technology. Its not clear to me what was contributed by Abbvie to this collaboration.