Momenta Pharmaceuticals, Inc. (MNTA)

[io_io]

Sure, it isn't a great example.

So, should it or should it not be in the RMF as the sole "example"?

With competition for Tercica assume the margins drop to 80% and they were willing to pay 1/4 of those in a license deal. For the same logic on aL, and even with your expected degradation of GM, you'd still expect 7 or 8%.

1. Why would Tercica have competition is the settlement or victory meant that it's patents were upheld? After all, the deal was for the life of the patent?

2. So, you use this "1/4" as if the payout should be linear to GM. But at 80% is not Tercica enjoying an enormous NET profit margin? And in the case of WPI/Ampha, would not your 7% or 8% consume the entire NET profit margin?

Thank you for highlighting the analogy was really a comparison between a 60% NET profit margin and a 0% NET profit margin.