Replies to post #82211 on Biotech Values

[DewDiligence]

VRTX JNJ Medivir:

While Telaprevir may certainly have a head start TMC435 seems quite promising. If TMC435 doesn't encounter strong safety concern and continues to show very high potency from a competitive and economic standpoint wouldn't it make sense for J&J to promote it instead?

The answer depends greatly on the terms of the respective partnership agreements.

The JNJ-VRTX agreement may have a provision whereby JNJ would owe VRTX milestones and royalties even if JNJ opted to develop a competing PI in place of Telaprevir. As you probably know, the Roche-ITMN agreement for ITMN-191 has such a provision.