Biotech Values

[10nisman]

First thoughts: I am surprised by the boards general response that 'these terms look ok'. I doubt anyone yesterday would have predicted substantially lower terms than MNTA is getting on Copaxone - and they are a lot lower unless you assume that the competition will be very fierce (i.e. price is driven so low that GM is well under 50%).

Please explain how you see today's terms substantially lower than MNTA's terms for Copaxone.

Clearly we need more information on the financial terms however from what is described in the 8K. I read the financial terms as the following:

First 2 FoB's - if MNTA reaches fully interchangeability it receives ~20% of net sales vs. 50% of net profits on mC. With respect to the cost and profit share arrangement, MNTA could receive 30% of net profits + 10% of net sales as royalties.

If you do the math the current deal terms under the cost & profit share arrangement are in the same ballpark with mCopaxone.