Biotech Values

[DewDiligence]

Re: IDIX royalty income

>Do you have any ideas what the NVS royalties could amount to, roughly? Just a minimum/maximum range.<

As of the most recent quarterly numbers (which are reported with a one-quarter lag, e.g. IDIX’s royalties booked in 2Q08 corresponded to NVS’ drug sales in 1Q08), Tyzeka/Sebivo was selling at an annualized rate of approximately $35M. Based on JP’s comments today, NVS’ sales have presumably increased to, say, a $50M run rate.

IDIX’s royalty income is based on a complex formula that has not been disclosed (#msg-24405569); however, it’s reasonable, IMO, to use a 20% figure as an estimate.

Thus, the short answer to your questions is that IDIX can expect to book about $10M in annual royalties given NVS’ current sales level.