Biotech Values

[mouton29]

A key element of MNTA's take is the gross margin. How will all of this affect that? Does more competition per se mean more expense; is the institutional market more or less expensive to compete in? What is the extent and effect of price cuts?

FWIW, it seems to me that the hybrid split can be expressed as
MNTA's annual share = .45 x GM x Revenue - 47.25/GM, where GM is gross margin. This assumes a 10% royalty; the second term is essentially the difference between the profit share and the royalty on the amount sufficient to produce $135 million of profit. The second term, for example, is $78.75 million using a 60% GM. A decrease in GM decreases the first term and increases the second by extending the time to switch from royalty to profit share.