Biotech Values

[DewDiligence]

I’m not unduly concerned about MNTA’s cash flow, but I am somewhat concerned about what Amphastar’s approval means vis-à-vis MNTA’s proprietary technology.

If Amphastar got approval because the FDA lowered its standards—perhaps in response to Amphastar’s high-profile lawsuit against the FDA—then MNTA’s technology edge remains intact, particularly with respect to FoB’s.

On the other hand, if Amphastar got approval because what MNTA did was not that hard to replicate, then the underlying value of MNTA’s technology has to be marked down to some degree.

It’s too soon to say how this will shake out, IMO.