Replies to post #10840 on GTC Biotherapeutics (fka GTCB)

[DewDiligence]

GTC’s Relationship With PharmAthene

[Updated for 2Q08 results; the Protexia IND and start of
phase-1 are expected in Aug and Sep 2008, respectively.]


#msg-31415129 2Q08 financial results
#msg-27989353 Streamlined biodefense timeline

#msg-4107224 2004 IP license for Protexia
#msg-17826727 IP license expanded to all indications
#msg-22544066 2007 process and purification agreement
#msg-27957330 Extension of agreement through 2008

#msg-25964817 2008 Washington Post article
#msg-27925140 Protexia grant from US DoD
#msg-14110344 Protexia grant from NIH
#msg-28330311 Protexia program in Alzheimer’s disease
#msg-27806002 PharmAthene acquires biodefense vaccines

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What are the economics of the relationship for GTC?

GTC has not disclosed the economic terms of the PharmAthene relationship; however, Dr. Cox did provide some color in reply to a question on GTC’s 4Q06 CC (#msg-17607391). Based on that, I think it’s conservative to assume that GTC stands to earn a mid-single-digit royalty on the sales of Protexia. The PharmAthene relationship could thus generate a non-trivial income stream for GTC, especially if the Protexia program in Alzheimer’s disease were to pan out.


“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”