Biotech Values

[mcbio]

Re: IMGN valuation

SGEN has been saying total 100% penetration worldwide market value for SGN-35 in the r/r setting is $400M. Assume 50% of that and you have $200M. For T-DM1 to get to even that, it would have to sell $4B. I like the drug, but I don't think it gets to $4B.

As to Dew's net/gross question, working from memory I believe the only outbound royalty is a tiny one for maytansine.

Good to hear that net royalties due IMGN on T-DM1 sales are probably close to 5%. If we can just have reasonable confidence in T-DM1 being a $2B/year drug, that's still roughly $100M/year in royalties for IMGN. That's a nice chunk for a company with a ~$400M market cap even if that revenue stream is a few years off. I do agree with PGS' point about the market probably still wanting to see IMGN have success with some of the other drugs in its pipeline to show that the company is not a one-trick pony. But, it sounds like the company has improved its linker technology in collaboration with DNA and otherwise to give some hope on this front.