Replies to post #193523 on Biotech Values

[DewDiligence]

Glatopa’s operating margin subject to profit-sharing by MNTA won’t be as high as 80% because of the contractual amount NVS levies for selling expenses (irrespective of how much NVS actually spends on selling) is probably at least 20% on its own.

Moreover, COGS will initially be fairly high as the fixed costs of production are spread over the relatively small revenue base.

For 2Q15, I estimate that the Glatopa operating margin will be 55%. Applying this rate to the $70M estimate for sales and dividing by 2 gives about $19M for MNTA’s (pre-tax) take.

[DewDiligence]

MNTA—Adding the $10M launching milestone payment…

Don’t forget the separate $10M milestone payment for FDA approval of Glatopa, which occurred during 2Q15.