Replies to post #84407 on Biotech Values

[DewDiligence]

Dew, do you have any idea what the terms are for ABT and Boston Scientific to compensate NVS for the m-tor inhibitor [everolimus] used to coat the stent, Xience [and Promus]?

To my knowledge, this has not been publicly disclosed.

Is there anything that obligates NVS not to provide this drug to competing stents?

Not that I know of; however, the question is probably moot. When you add JNJ’s Nevo (which uses sirolimus revervoirs—see #msg-37962147) to the array of currently marketed drug-eluting stents (#msg-39762286), there is not a lot of room left for new entrants. Regards, Dew

[DewDiligence]

NVS is now disclosing its sales of everolimus to ABT for incorporation into the Xience/Promus stents. The amount was $67M in 3Q09 and $183M in the first nine months of 2009:

http://www.novartis.com/downloads/investors/sales-results/Q3-2009-report_EN.pdf (pages 37-38)

BSX’s Promus Element stent, soon to be launched outside the US, is made by BSX itself rather than by ABT; NVS will supply BSX directly with the everolimus coating for this stent.