If MNTA/NVS got the sole approval for generic Lovenox, MNTA could strictly speaking afford to fund the M118 program on its own. But even then, it probably wouldn’t be a good decision to do so. Under the Lovenox scenario we are talking about, MNTA would immediately turn profitable. Investors would value the stock based on the expected earnings per share, which would be considerably higher if someone other than MNTA were funding the M118 program.
Moreover, MNTA does not have a lot of in-house expertise in designing and conducting large clinical trials in ACS. The probability of the M118 program’s ultimately being successful is increased if an experienced partner is on board.
“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”
