Biotech Values

[DewDiligence]

MNTA—I do not draw a negative inference from the 70% achievement figure for the Copaxone regulatory and development goals in #msg-74739058. As was the case with Lovenox, MNTA can only guess as to when the FDA will approve the Copaxone ANDA; the 70% figure is presumably the default value the company uses when the ball is in the FDA’s court and MNTA is simply waiting.

Historical note: In assessing its execution against internal goals for 2008, MNTA gave itself the same 70% achievement figure on the goal of FDA approval of Lovenox—even though all MNTA knew was that the ball was in the FDA’s court by the end of the year (#msg-37687271). Then, when assessing execution against its 2009 goals a year later, MNTA gave itself a more honest achievement figure of 0% on the goal of Lovenox approval; this caused a low bottom-line weighted achievement score of 68.5% on the aggregate set of 2009 goals and resulted in relatively small bonuses for the corporate officers (#msg-49501257). After this 2009 experience, the Compensation Committee of MNTA’s BoD may have concluded that it was unduly harsh and that a 70% achievement figure was appropriate after all when the ball is in the FDA’s court and there is no reliable indicator on the timing of an approval.

In short, the goal-execution calculations that MNTA performs each year for executive-compensation purposes ought not to be taken too seriously, IMO.