Replies to post #69100 on Biotech Values

[DewDiligence]

>MNTA – Do you have any idea what the exact royalty will be for MNTA on sales of generic Lovenox if there are multiple generic competitors? I'd assume it's still a double-digit royalty.<

The exact number hasn’t been disclosed. My guess is that the gross royalty is in the low teens and the net royalty (after deducting MIT’s take) is in the neighborhood of 10%.

Note that in the case where the FDA approved only MNTA/NVS’ generic Lovenox but Sanofi entered the market with an “authorized” generic distinct from its branded Lovenox, MNTA’s economic take would be somewhere in between the single-generic and multiple-generic cases. Most investors whose opinions I respect think this is an unlikely outcome, however.

[DewDiligence]

>Is MNTA your favorite biotech stock right now, Dew?<

MNTA is both the largest and most profitable (+51%) of my current biotech holdings. I made all of my purchases when the stock was cheap, mostly in Nov 2007 immediately following the FDA non-approval of generic Lovenox. After adding shares very recently, my cost basis went up to 5.94 (#msg-33726532).

Perhaps stupidly, I did not sell any shares when the price spiked to $20 last summer. Why didn’t I? The simple answer is that I think MNTA has much more upside than that.