Replies to post #98181 on Biotech Values

[rkrw]

Post approval economics are very rich. It's a reasonable deal since why would anyone pay massive money upfront when final approval may be uncertain.

[DewDiligence]

ARNA: I am suprised that they didn't get much upfront and only $90m on approval. Sounds like the deal that TSPT got last year… ARNA has a $400m diluted market cap - so this $$$ isn't that big a deal and the upfront is about $0.45 a share.

I strongly disagree. Lorcaserin has the potential to be a big-selling drug, and hence ARNA’s 31.5%-less-COGS cut on every sales dollar* is a big pot of potential money.

TSPT’s Intermezzo is in a whole different league. It will never amount to much commercially, IMO.

*Increasing to 37.5% less COGS when annual sales exceed $750M.