Biotech Values

[iwfal]

Dew - Although I haven't even spent 30 seconds trying to understand this before, I'll just point out that there is something at least unclear about the post you reference as an explanation of the repayment of development expenses. You appear to define R=pR when p=0.45. Which makes no sense of course.

Let R be the cumulative amount of Lovenox development expenses NVS will reclaim via deductions from its payments to MNTA of MNTA’s Lovenox profit share or royalty.

• Let p be MNTA’s explicit or implicit share of Lovenox net profits. (If there is only one FDA-approved generic, p is known to be approximately 45%; if there are multiple FDA-approved generics, p is whatever share of Lovenox net profits the royalty payments work out to, which can be estimated but has not been disclosed.)

The cumulative amount of net profits from Lovenox that MNTA will forgo in order for allow NVS to reclaim its development costs is the product of R and p, which is (trivially) proportional to p.