Biotech Values

[DewDiligence]

Re: SRDX, MDT

I think we’re on the same wavelength.

Your $250 figure for the retail value of the DES delivery system is about right according to ANPI, who implicitly discloses this number because BSX excludes the delivery system from the overall Taxus package when calculating the royalties owed to ANPI. If the average DES price in the U.S. is now in the low $2,000’s, the delivery system at $250 represents about one-ninth of the total DES package.

Since the SRDX royalty on Cypher is only 1%, if the royalty on the MDT delivery system were as high as 9%, SRDX would net roughly the same royalty from one ENDEAVOR stent as from one Cypher. So the question boils down to projections for MDT’s DES market share, as you said.

Not surprisingly, MDT says that their DES share will be much, much better than the 10%figure you cited. Time will tell.