Biotech Values

[DewDiligence]

Re: Cladribine for MS

Teva as always doesn't say much and I think that royalties were not disclosed by Merck/Serono or Ivax either. But analysts were talking a mid-teens (15% max) royalty on sales to Ivax.

Compared to the industry standard, 15% seems a little high for the kind of formulation work Ivax did; most such royalties are less than 10%.

In any case, if the analysts’ sales projections for Cladribine are even in the ballpark, these royalties have the potential to be material even for a company as large as Teva.