Replies to post #320 on Idenix Pharmaceuticals (IDIX)

[go seek]

afterhours down was on 200 shares & meaningless
happens w/ regularity

have seen no effect on following business day(w/ miniscule volume)

if there was news w/ "an impact" afterhours, trading would most probably be in the many thousands of shares...

[DewDiligence]

Litigation roundup:

[In a prior post (#315), I misspoke about these cases. I’ve deleted that post so as not to confuse anyone.]

There are two areas of disagreement between the parties, IDIX and the University of Alabama–Birmingham (UAB), where JP Sommadossi used to work: 1) Tyzeka/Sebivo; and 2) NM283. In this post I’ll summarize the issues, and in the following post I’ll paste the actual text from IDIX’s SEC filings.


Tyzeka/Sebivo

In early 2006, UAB received a patent continuation form the USPTO; UAB claims that this patent covers Tyzeka and entitles UAB to royalties on U.S. sales of Tyzeka of 6% on the first $50M during each calendar year and 3% on amounts above $50M during each calendar year. UAB also claims 20% of past milestones to IDIX from NVS pertaining to Tyzeka, which amounts to $15.3M.

(In the highly unlikely event that NVS were to cease being a majority owner of IDIX, UAB would be entitled by prior agreement to a whopping 30% of royalties on sales of Tyzeka and 20% of milestones. I’m not concerned about this, however, because there’s essentially zero chance of NVS’ equity stake falling below 50%.)

This Tyzeka dispute is currently in limbo. If the parties cannot reach a settlement, the dispute will go to arbitration.

On 1/12/07, UAB filed a complaint against IDIX in U.S. District Court concerning Tyzeka. (This was the subject of the 8K filing on 1/19/07: #msg-16351787.) Until there is further disclosure of this complaint, it is unclear how it relates to the main Tyzeka dispute discussed above.


NM-283

This dispute has been settled and is de minimus in the overall scheme of things. UAB will be entitled to a 0.5% royalty on worldwide NM-283 sales and a $1M milestone upon FDA approval. If, during the first seven years following NM-283 approval in a major country, the cumulative 0.5% royalty on sales is less than $12M, then UAB will be entitled to the balance between the cumulative royalty $12 at the end of the seven-year period.