I would say that this issue makes it difficult for analysts to come up with earnings/revenue estimates. What is the likelihood of halo and partners getting the co-formulation patents they can assign to each product? Is it 50%? 80%? I have no idea, and I'm not sure they know either. I would think they feel they need to be conservative. We also don't know exactly how Halo's agreements with their partners are structured for each product. If the co-formulation patent is issued, is the step down royalty rate delayed (and for how long?) or eliminated?
And obviously, the most important co-formulation patent is the one for Darzalex Faspro. A step down royalty rate will definitely adversely affect halo's revenues and earnings starting from 2024, so it'll be interesting to see what kind of estimates analysts come up with for 2024 in the next month or so.