Biotech Values

[flatlander_60048]

Seems a little premature to be making this statement. The pricing announced by Sandos left considerable room to negotiate additional discounts.


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In hindsight, Sandoz's initial pricing kept Sanofi in the ballgame.
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If Lovenox becomes viewed as a commodity (isn't that what fully substitutable means) with only two suppliers then the pricing will gravitate to a price point where both suppliers remain " in the game". Hopefully each of those suppliers are smart enough not to gut the margins right out of the gate.

The night of Sullivan's ruling I said a short term MNTA pop would be met by another sell off. I still feel that this sell off will be followed by a long term run which will likely be Stoked by Sandoz quarterly sales information (Oct 21 and thereafter).

The average investor is exhibiting short term focus on the hidden reason for MNTA not skyrocketing. They fail to recognize that the market can undergo irrational periods. Large Cap stocks with excellent earnings, visibility, and dividends are trading at huge discounts to historical valuations. Given the current tone of the market, why isn't it understandable that the market may need to see the earnings materialize for MNTA before the valuation catches up.

MNTA is has demonstrated at least two instances where it's reverse engineering technology has received the FDA seal of approval (contaminated heparin and M-Enox). I'd be surprised if additional collaboration opportunities don't materialize for MNTA in the near future. Perhaps that is why they are hiring.

Good Luck
FL