Idenix Pharmaceuticals (IDIX)

[DewDiligence]

Economics of NVS/IDIX Collaboration for Tyzeka in HBV

—Collaboration inked in May 2003, at which time NVS bought a majority stake in IDIX.

—Tyzeka (a.k.a. Sebivo) now approved in all major countries.

—Co-marketing and 50/50 profit split between NVS and IDIX in U.S. and western Europe (Germany, UK, France, Italy Spain).

—Royalties payable to IDIX on sales by NVS in the rest of world.

—NVS funded all pre-approval development expenses and paid $110M to IDIX in regulatory milestones.

—Cost of post-marketing clinical development is split 50/50 between NVS and IDIX.

—Undisclosed future milestones are payable to IDIX upon achieving specified sales thresholds.