Biotech Values

[aslan2772]

"this design win ensures that SRDX remains a player in the DES arena."

A lubritious coating for the stent delivery system should be a smaller deal overall, in terms of royalties earned, than a drug-eluting coating. To roughly estimate the royalty, say SRDX earns 10% of the delivery system cost, which is just a fraction of the cost of the total stent system (maybe $250?). However, since SRDX got ripped-off by JNJ (est. 1-1.5% royalty on Cypher) for use of their Bravo drug-delivery coating, the royalties for the lubritious coating could have meaning, relatively speaking, if MDT were to capture a large market share. But, a large market share for MDT is unlikely IMHO. In this case, SRDX is likely to earn significant money from the deal, but probably only a fraction of what they recieve from JNJ, given the large market share currently held by Cypher. For example, if MDT captures 10% of the world market, and Cypher 50%, royalties from MDT would be one fifth of that from JNJ (which would add about 5-10% to SRDX's current bottom line, depending on reagent sales). I remind you this is a very rough calculation based on assumptions. Still, this is good news and perhaps others will license SRDX's lubritious coating for DES.