Biotech Values

[DewDiligence]

…because NVS is paying the reimbursement charge with half their own money. Which is why I seriously doubt the deal is structured as PGS thinks.

The contract was deliberately structured in exactly this manner. Consider what would happen if another generic were launched or if SNY launched an AG. In that case, MNTA’s effective share of Lovenox profits would go down. If this were to happen, it would be unduly onerous for MNTA to be docked for the same amount of NVS’ development costs as in the case where MNTA is getting a robust profit share.

The way the agreement is actually structured is much fairer; it ensures that the cumulative Lovenox profits MNTA forgoes due to NVS’ recouped development costs are directly proportional to MNTA’s bottom-line take from Lovenox.