Biotech Values

[DewDiligence]

MNTA—what about the $100M [court] bond...?

Unless NVS/MNTA overturn the verdict on appeal (unlikely, IMO), some or all of the $100M presumably goes to Amphastar as compensation for the preliminary injunction in Oct 2011 that kept AMPH from launching its product until Jan 2012 (when the CAFC lifted the PI).

An out-of-court settlement wrt the amount owed to Amphastar seems pretty likely insofar as the amounts in question are relatively small for NVS/MNTA and AMPH, with a shaky balance sheet, presumably prefers getting some cash immediately rather than shelling out for continued legal expenses in a drawn-out appeal.

Note that MNTA's portion of the $100M court bond is $35M (NVS put up the other $65M).