GTC Biotherapeutics (fka GTCB)

[DewDiligence]

GTC’s Supply Relationship With PharmAthene

#msg-17564640 Supply agreement for bioterror indications
#msg-18433447 Expanded IP license
#msg-18433447 Protexia program in Alzheimer’s disease

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What are the economics of the PharmAthene relationship with GTC?

Based on the discussion from GTC’s 4Q06 CC (#msg-17607391), I think it’s reasonable to assume that the economics of the PharmAthene relationship are similar to those of GTC's Merrimack relationship, which I’ve estimated at a high-single-digit percentage of end-user product sales (#msg-18566595).

Protexia probably doesn’t have as much sales potential as Merrimack’s MM-093, so the absolute value of the PharmAthene relationship for GTC is probably less than the absolute value of the Merrimack relationship on a risk-adjusted basis. The PharmAthene relationship could nonetheless generate a consequential income stream for GTC, especially if the longshot program in Alzheimer’s disease were ever to pan out.