Replies to post #97359 on Biotech Values

[mcbio]

Re: NBIX (elagolix royalty rate)

When asked what neighborhood the royalty rate was, he said something to the effect of "good neighborhood, nice trees, well manicured lawns" and that it was tiered.

When pressed, he said it was similar to a 50:50 or 40:60 profit split. So I'm guessing it reaches up into the mid-20's or so at the top tier.

Wow, that's very good news for NBIX. Thanks Peter. Surprised that there wasn't a bigger pop for the stock today, although the stock did already have a nice run after the final Phase 2b elagolix results. Given the good economics of the deal, I'm still going to keep NBIX on my watch list and possibly consider the stock in the future. Seems like it still has some potential given the economics for elagolix and NBIX's market cap although I would of course not want any part of the ultimate Phase 3 results.