Biotech Values

[DewDiligence]

Musings on the MNTA-BAX deal:

The MNTA-BAX partnership can be quite lucrative* for MNTA if MNTA makes good on its claim of being able to develop interchangeable FoB’s for big-selling biologics such as Humira that no one else can. If, on the other hand, the partnership fails to accomplish this, the economic value of the collaboration to MNTA will be modest at best.

I would submit that the tepid investor response to the BAX deal (so far) is not due to a deficiency in the partnership’s financial terms, but rather to skepticism that MNTA can accomplish what it says it can accomplish with respect to interchangeability.

*See #msg-70236725, #msg-70237561, and #msg-70238965 for supporting arithmetic.