Replies to post #92602 on Biotech Values

[ariadndndough]

biomaven and others--- would it not make sense for aria to lower the royalty rate on rida to say 20 percent from 50 percent and get some cash upfront. that way mrk can go ahead and test away. in the longrun if mrk gets rida in other indications like there pursuing who cares if we get 20percent were still on get some money BUT THE KEY IS WE RETAIN 100 PERCENT OF 534. thats my hope at least.

dough

[biomaven0]

I'm having trouble figuring out how Ariad plans to fund their operations past mid-year. An AP-24534 deal would be one source of cash, but trying to rush a deal might not be the best way to maximize its value, and with a lot of interested parties involved, one would think the negotiations could take some time.

All the indications to my mind point to a 534 deal in the near future (I'd predict in the next couple of months). $100m-$150m upfront takes care of their cash for the foreseeable future. The outline of any deal (except with NVS) is pretty straightforward. A NVS deal is obviously much more complex because of Tasigna.

Peter