Biotech Values

[DewDiligence]

I think you expressed some bearishness when VRTX monetized a portion of its Telaprevir royalty stream and I totally agree with that.

Indeed I did; however, there’s a key difference between the Telaprevir case and the generic-Lovenox case: when VRTX monetized Telaprevir, it was in the midst of phase-3 trials and there could have been a skeleton in the closet with respect to safety.

I think it sends kind of a bearish signal. If you're confident in your drug, why limit your ceiling?

In the case of generic Lovenox, what does confidence in the drug have to do with anything? Lovenox is a big-selling drug and will continue to be a big-selling drug for many years. The only question is how much MNTA’s participation is worth; therefore, I would view a monetization of MNTA’s share of Lovenox as a strictly financial transaction with no particular inferences to be drawn about the future of Lovenox per se.