Biotech Values

[microcapfun]

>>Even though Bayer exclusively funded the clinical development in Japan, a 7% royalty rate seems unduly low. I suppose this is the price for ONXX’s having inked favorable economic terms elsewhere in the world.<<

I don't know how that came about, but it might have had something to do with the great difficulty of getting a drug approved in Japan. In fact a separate Phase 3 trial in liver cancer had to be carried out in Asian patients because (as you noted) they are more likely to have HBV rather than HCV. I don't know if Onyx contributed to the cost of that study, but they certainly didn't contribute to the registration and marketing expenses in Japan.

What I find amusing is that at the time Bayer and Onyx signed their agreement, nobody had any clue that the great majority of Nexavar's revenues (unless maybe they get approval in lung cancer at sometime in the future) would come from liver cancer which is HUGE in Japan! Presumably Bayer is happy how that turned out ...

micro