Biotech Values

[DewDiligence]

Musings on terms of a MNTA FoB collaboration:

…what type of partnership is $MNTA looking for in the FoB arena? It sounds like they are asking for a very big deal to encompass multiple candidates. What type of upfront payment would you anticipate for a large program like they discussed? 100-200M?

I would expect that a MNTA collaboration to develop and commercialize one or more FoB’s for the US market would have the following features:

• $40-75M of up-front cash per compound.

• A roughly 50/50 split of development costs.

• Full payment by partner of commercialization costs.

• A roughly 50/50 split of net profits.

• Indemnification by partner for potential legal liability arising from the collaboration.

• An option for ex-US development that would trigger an up-front licensing fee if exercised.

The above features might also apply to a collaboration for so-called biobetters that would be developed using the traditional BLA pathway; however, I think MNTA’s focus will be on the abbreviated regulatory pathway for FoB’s set forth in the 2010 healthcare law (#msg-48581353).

JMHO, FWIW