Biotech Values

[DewDiligence]

MRX TEVA – Starting with the Protonix case, Teva has honed a new tactic: launch “at risk” and only then offer to settle. The asymmetry of the information—wherein only Teva knows how much product has been placed in the channel—greatly favors Teva in these kinds of confrontations.

The Solodyn settlement terms are not exactly bullish for MRX, and I think the commercial prospects for Reloxin are less than stellar.

MRX’s shareholders would probably have fared better if MRX had allowed itself to be munched by Mentor a few years ago; had they done that, MRX would now be part of JNJ. Unfortunately for MRX shareholders, Jonah Shacknai is the kind of CEO who will fight tooth and nail to keep his job no matter what.