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DewDiligence

02/04/15 9:08 AM

#186980 RE: WorstLuck #186978

Re: Updated ENTA valuation model

Most of my quibbles amount to trivial changes to the bottom line.

If one of your quibbles is the 30% “value share” for ABT-450 (rather than the 35% assumption in the old model), I think that’s indeed a quibble. Why? Because the thresholds in ENTA’s tiered royalty rates from ABBV are likely much lower than most investors probably think. These tiers were negotiated by ABBV and ENTA in 2006, when no one dreamed that annualized HCV sales for any product would be as high as the numbers we’re now projecting.