Biotech Values

[DewDiligence]

The 2003 NVS-MNTA agreement to produce generic Lovenox for the US market requires NVS to indemnify MNTA for legal liabilities arising from the program. Although the specific legal complaint that was just filed against Teva may not have been anticipated when the 2003 NVS-MNTA agreement was crafted, MNTA could argue that it falls under the indemnification provisions of the contract. If so, it makes sense that NVS wants to participate as a principal in a case where it could conceivably be on the hook for damages.

NVS’ participation in the lawsuit is also consistent with the notion that NVS and MNTA are discussing a monetization transaction for generic Lovenox, but this need not be the only impetus for NVS to be involved.