Biotech Values

[DewDiligence]

I guess where I'm confused is in your cash flow/ profit model as explained in msg# 101267, you are suggesting that Momenta is responsible for 100% of Sandoz's total development costs. I could understand if Momenta was responsible for 45% (profit percentage) of the costs, but it makes no sense for them to be responsible for 100% of them.

NVS gets to recoup 100% of its development costs from Lovenox net profits. That’s where the 100% figure you’re talking about comes from.

If MNTA’s share of Lovenox net profits during the period when NVS is recouping its development costs is 45%, then MNTA effectively foregoes cash flow equal to 45% of NVS’ development costs in order to allow NVS to recoup its development costs from Lovenox net profits. That’s where the 45% figure you’re talking about comes from.