Biotech Values

[jb_118]

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

If I'm MNTA, I'd have hoped fom something more proportionate to how NVS/MNTA are splitting the profit from mEnox. From that perspective MNTA got the short end of the stick. If you take it from the perspective of who is hurt worse from a generic launch, perhaps it is proportional, since the terms of the deal with NVS are so biased in their favor.

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.

The statement in the SEC filing seems strangely worded to me, such that I'm not sure your interpretation follows from the language.

If, however, the period during which Sandoz is obligated to pay the Company a hybrid of royalty payments and profit share...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

I wouldn't say that the hybrid period is terminated when they convert to the profit share for the remainder of the launch year. Rather I'd say the hybrid period is terminated when a generic is launched other than the AG and they are in a strict royalty mode. Although I could be wrong as I find their language confusing.