Here is my back of the envelope difference in earnings with AG and non-Ag but no other generic on the market.
Aggressively assuming $800 million to NVS in sales with $80 million annual expenses to MNTA = $115 million profit before tax to MNTA under the AG economic model.
Vs., at $1 billion a year NVS sales, 65% gross margin, 45% profit share of what was $292 million per year minus $80 million in expenses = $212 million per year.
Difference of approximately $100 million per year after taxes.
Difference being, with IP protection, the market may give MNTA a larger multiple. Say 5-10x vs. 2x that we currently enjoy.
Which either way you look at it, pretty much, you get copaxone and FoB for free. But we already knew that.
Tinker
