Biotech Values

[poorgradstudent]

GLPG:

GLPG has a higher royalty (tiered starting at 20%) and significant milestones (was 1.35B at time of signing but that covers a multitude of indications).

Incyte is getting up to high 20s. I'm not sure where it starts.

JAK's safety profile. It was interesting in their 4 week studies filgotinib seemed to have a positive effect on Lipids but not in the 12/24 week studies.

I've been trying to figure out what the FDA's concern may be. I speculated it could be lipids, but am now unsure. In any case, I don't think there is a meaningful difference in lipid profiles that we can point to, and part of the lipid response is a factor of the underlying disease.

For what its worth my impression from the press release was Lilly was going to try to do some sort of appeal by the wording of their opinion.

Agree, and I think it unlikely to succeed. It sounds as if they analyzed some existing / follow-up data in different ways to address the FDA concern, and that failed. It would be interesting if we ever hear from Lilly/Incyte what the exact concern is... if we don't, I suspect then that it is a class concern for the FDA.

I like the GLPG drug as well, and think it has good efficacy. Will be interesting to follow this as it plays out.