Replies to post #30472 on Biotech Values

[DewDiligence]

> NBIX / PFE – In the area of labor law, it is quite standard to sign a new labor agreement and sit out a gardening period for your non-compete. The mere signing of the new contract does not violate the agreement.<

But this is not labor law—the collaboration agreement between NBIX and PFE has specific non-compete terms that govern what can and cannot be done. Unfortunately, most of the non-compete language has been redacted in the SEC filings (http://www.siliconinvestor.com/readmsg.aspx?msgid=22567263 ), but I would be shocked if the language permitted PFE to ink a competing deal during the non-compete period merely because the deal would not close until after the window.

The whole argument may be moot, however. At the end of the Indiplon CC, Lyons said that he might waive the six-month non-compete requirement if PFE made it worth his while to do so. Regards, Dew