Biotech Values

[jbog]

Pollyvonwog,


How is it poorly designed?

It's my impression that Momenta had the real Value component in the M-Enox arrangement. If that's true, Monenta priced its value at two distinct levels. Value X if M-Enox is soley approved and Value Y if it's approved with other drugs.

What I think has transpired is that it took time for Momenta to realize what its Value truely is. Proof of that is laid out in the 2006 M-Copax agreement. That agreement has one price paid to Momenta no matter what the future sales landscape is.

In a nutshell, would Sandoz be at this point in M-Enox without Momenta? Nope. So why would Momenta accept 45% of profits versus 10% of sales????? It certainly doesn't make any sense whatsoever UNLESS these two numbers are much closer to each other as a net payment to Momenta. The people here wouldn't agree at this point.

PS, I did sell in the 22's but I bought back in at 18. My bad.