NVS is on record that Lovenox will have the highest operating margin of any drug in Sandoz’s portfolio. If this were not true, it’s doubtful that NVS would have spent many tens of millions of dollars to license MNTA’s technology and develop and commercialize the product in spite of the large risk that either SNY’s patent would hold up or the FDA would not grant approval.
For those who nonetheless wish to be worrywarts, here’s another data point: Sandoz’s average operating margin in 2Q10 was 18% (see chart below):
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”