Biotech Values

[DewDiligence]

Re: MNTA’s future Lovenox royalty rate

From the 4Q11 CC (#msg-71929088):

In each contract year, which begins on July 1, for net sales up to a predesigned sales threshold, the royalty is payable at a 10% rate and for net sales above the sales threshold the royalty rate increases to 12%.

The above are gross rates excluding MNTA’s small royalty on sales payable to MIT. Since the threshold for the switch from a 10% gross royalty to a 12% gross royalty has not been disclosed, for modeling purposes it’s probably best to use a 10% figure as MNTA’s net royalty (after the small amount payable to MIT) as the average rate over a full launch year (which runs from Jul 1 to Jun 30).