Biotech Values

[10nisman]

Another disclosure on MNTA’s 2Q11 CC today is that the contractual royalty rate payable by NVS in the event of a second FDA-approved generic Lovenox in the US market is “low double digits.” According to MNTA, the new royalty rate is an increase of 20-25% from the old royalty rate, which was never precisely revealed but was thought to be about 10%.

The new royalty rate should result in the sell-side community to raise their price targets slightly ($1-2). It'll be interesting to see if they actually end up adjusting their target prices accordingly.