Biotech Values

[DewDiligence]

Does the amount to be reimbursed vary depending on the royalty situation in place?

No—the amount is fixed at what NVS has actually spent on Lovenox development. Note that MNTA has no obligation to reimburse NVS for Lovenox commercialization (as opposed to development) expenses.

are the revenues reduced by a limited amount, or will there be no cash flow into MNTA until the obligation is met?

I think there’s an undisclosed timing algorithm to ensure that MNTA gets some cash flow during the reimbursement period. I will reread the SEC filing on the NVS-MNTA partnership agreement to double-check this point; however, the use of a reimbursement timing algorithm is standard pharma-industry practice in these kinds of agreements, so I would be surprised if it did not pertain.