Biotech Values

[iwfal]

Dew - Thanks. Perhaps not coincidentally (-g-) such a 20% royalty would probably be considered close to 'fair' by Sandoz as well:

Under current conditions:

Momenta gets about 0.5(Market share of mL)x0.68(GM)x0.45=15.3% of total lovenox market

Sandoz gets about 0.5 (Market share of mL)x0.68(GM)x0.55=18.7%

Sandoz vs Momenta ratio = 1.22


Under conditions of T and A giving 20% royalties:

Momenta gets 0.2(MS for each mL)x0.11 (Royalty on mL)+ 0.2*0.2+0.2*0.2=10.2% of total lovenox market.

Sandoz gets about 0.2 (MS of mL)*0.63 (reduced Gross Margin due to lower volumes - 0.11*20=10.4% of total lovenox market share.

Sandoz vs Momenta ratio=1.02