Biotech Values

[rkrw]

I would agree with Dew there's still a lot of skepticism about mnta's ability to get a substitutable biogeneric approved. And until they do it there should be. Keep in mind, MNTA/BAX may well do everything perfectly and still get push back from the FDA.

I would think another giant factor would be cost. BAX is effectively paying 100% of the costs. Even quite a few big pharma are partnering up and cost splitting in this space.

Given BAX paying, I don't think the deal is so bad. It's kind of clever. If the FDA does show they'll approve a MNTA generic as interchangeable, certainly MNTA will opt-in on 3 through 6. Let the first couple be the proof of concept before shelling out the big money.

A last factor, the deal allows the cash flow to continue to accumulate while Lovenox is exclusive and the wild card in Copaxone. MNTA stock would have gone down today if they were splitting the cost and sacrificing eps for the next 7 years :)