Biotech Values

[DewDiligence]

We’re in full agreement about the nature of the risk-reward tradeoff. However, I think VRTX will take the position that they’re the leader and hence they will want to be compensated for taking any risk at all in running a combo trial with another antiviral agent.

Assuming for the sake of discussion that the agent to be tested with VX-950 is NM283, I think VRTX will likely insist that:

1. NVS pay all expenses of planning and running the combination study; and

2. NVS pay an up-front fee to VRTX, perhaps in the form of an equity purchase at a premium to the market price.