Replies to post #183006 on Biotech Values

[Bickema]

Quiz (low difficulty): Why didn’t ENTA establish the “value share” of ABT-450 within ABBV’s 3-DAA regimen a long time ago instead of having to negotiate this with ABBV at the last minute?

Waited to see GILD pricing of Sovaldi?

I guess it appears the market is disappointed with the 30% share value of the 3-DAA as well.

[DewDiligence]

Answer to ENTA quiz in #msg-107378398…

Q: Why didn’t ENTA establish the “value share” of ABT-450 within ABBV’s 3-DAA regimen a long time ago instead of having to negotiate this with ABBV at the last minute?

A: When ENTA inked the ABT-450 collaboration with Abbott in Dec 2006 (#msg-15492225), nobody imagined that the FDA (or any other regulatory body) would approve a cocktail of unapproved HCV drugs. I.e., the parties assumed that each constituent drug in any HCV cocktail would be individually approved and priced, which would have averted the need for negotiation about the “value share” of ABT-450 within any multi-drug regimen.