Biotech Values

[poorgradstudent]

>Assuming $45 million of the $47.9 million is MNTA co-development reimbursement<

I think we agreed that the reimbursement comes off the (sales - COGS) number, and is capped at 50% of this number. So if you think the reimbursement was 45 million this quarter, then the (sales - COGS) number would be 90 million. The order of when the reimbursement is taken from the revenue obviously matters.

If you think COGS is 92, then NVS can take up to 100 million this quarter for reimbursement (50% cap of 200 million), leaving MNTA with 45 million (.45 * 100).

Although the revenue comes out to the same as your calculations, that is merely coincidental. In the scenario I've calculated, it is more advantageous for MNTA as they'll have paid off a larger piece of the reimbursement pie (if not all of it).

I welcome corrections to these calculations. However, if Dew is right about the order of operations, the above scenario should be more accurate.