Replies to post #177985 on Biotech Values

[DewDiligence]

Thanks for weighing in on TGTX. Just to be clear: There won’t be a generic Rituxan available in any market during the next several years; rather, there will be (and already are in some markets) non-interchangeable Rituxan FoBs that have to be marketed as distinct branded drugs and have relatively high prices. For new CD-20 entrants, this is clearly a better scenario than having to compete against a full-fledged Rituxan generic.

[bellweather1]

Re:The TGTX Story

Hi,

unless combos with generic rituxin cure everyone.

Don't believe they will-remember, the glyco-engineered Anti CD-20s are 50-100x more effective than rituxin, and there's a large R/R market, So if TG-1101 proves to be as good or better than gazyva(shorter infusion time?, comparable efficacy as currently appears to be the case), then TG-1101 should have a pricing advantage, at least in terms of combinations with it's own delta, not to mention more pricing flexibility in general since they have both and there are some many deals they can make.

I wish I had more insight into the deal with Rhizen Pharmaceuticals

I'm not aware of any more details, but you can imagine that the licensing fees, milestones and royalties would be spread out over several years &, assuming the delta is successful, particularly in view of all the synergies, these should be very manageable.

they will need to raise money or make a deal in the not too distant future

I don't think they have to worry about that for at least a 18months(they claim 24months)they just completed a private offering for 16.8ml and have about 55ml cash-stated burn is 4-6/qtr, so even if they ramped up to 12/qtr(not likely), they shouldn't have a problem b/c the value of the franchise would already be confirmed(within a year), putting them in a strong bargaining position.

I derive a lot of comfort from the fact that insiders control 51% of this company, so, I assume, on balance, that their interests are largely aligned with those of the shareholders.

Regarding a buyout, I think that's one of the prime possibilities Michael Weiss had in mind when he set up this company, and it's one with which I'm perfectly comfortable.

Should be interesting to see what develops here.

Regards,

bw