Biotech Values

[DewDiligence]

More details on how NVS/MNTA will split the $100M bond and any conditional liabilities relating to the preliminary injunction against Amphastar:

http://www.sec.gov/Archives/edgar/data/1235010/000110465911064263/a11-29824_18k.htm

Pursuant to the Letter Agreement, the Company and Sandoz have agreed that, for the period prior to March 1, 2012, the Company shall post a bond of $35 million and Sandoz shall post of bond of $65 million on or before the close of business on November 10, 2011 to satisfy the $100 million bond requirement established by the court. In addition, the Company and Sandoz shall each be liable for payment of damages to the Defendants as a result of the preliminary injunction (should such damages be awarded by the court) in the following percentages: sixty-five percent (65%) by Sandoz and thirty-five percent (35%) by the Company; provided that such damages so awarded to Defendants are not in excess of the current $100 million aggregate bond obligation. The Company will designate $17.5 million as collateral for the bond which will remain restricted for the duration of the bond obligation.

If, however, the period during which Sandoz is obligated to pay the Company a hybrid of royalty payments and profit share (which is described in the Collaboration and License Agreement between the parties dated November 1, 2003 as the Aventis TPC Period) does not terminate prior to March 1, 2012, then the Company shall, to the extent the preliminary injunction and bonding obligation remain in effect, post an additional bond in the amount of $15 million and Sandoz shall have the right to reduce its bond obligation by such amount. Thereafter, the Company and Sandoz shall each be liable for fifty percent (50%) of the liability for payment of damages to the Defendants as a result of the injunctive relief awarded should such damages be awarded by the court.

In other words, if NVS sells enough Lovenox between now and 2/29/12 to trigger a return to 45% profit-share mode, MNTA will have to pony up another $15M for the bond.