Biotech Values

[mcbio]

Re: ARNA/Eisai Lorcaserin deal (economics)

I assume this is a fairly novel type of arrangement in terms of the economic structure. Most deals tend to be based on royalties or they are some type of profit-sharing arrangement. Regardless, can't we just think of the 31.5-37.5% less production cost as essentially equating to what would otherwise be a royalty? Also, any guess on what production costs for Lorcaserin will be for ARNA? I'm curious as to what kind of estimate we can ultimately make for ARNA's net profit % on Lorcaserin sales. Given that Lorcaserin is a small-molecule drug, I assume production costs won't be too steep and that 31.5-37.5% will not drop too much in arriving at the ultimate net profit %.