Replies to post #56278 on Biotech Values

[DewDiligence]

>MNTA – scenario 2: i think your valuation is excessive, mainly because of the reverse of the situation i lay out above - now the FDA is saying anyone can characterize sugars well enough to produce generics, and there is nothing special per se about MNTA's proprietary technology<

I respectfully disagree. If MNTA and Teva can characterize Lovenox, it does not necessarily follow that anyone can do it, and MNTA’s technology could still be extremely valuable in designing both complex generics and branded drugs such as M118.

The reason my valuation in case #2 is so much lower than in case #1 is that the economic terms of the Lovenox collaboration between MNTA and Sandoz are much less favorable to MNTA if more than one generic Lovenox reaches the US market.

I do agree that case #2 relative to case #1 entails some loss in the perceived value of MNTA’s technology, but this is not as black and white as you make it, IMO.