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Replies to #98184 on Biotech Values
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bxjwn9ru

07/01/10 8:05 AM

#98186 RE: DewDiligence #98184

ARNA’s 31.5%-less-COGS cut on every sales dollar is a big pot of potential money.



Agree. Comparisons to TSPT are absurd.
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wallstarb

07/01/10 8:16 AM

#98192 RE: DewDiligence #98184

You are right - there are a lot more fat people out there and the world is getting fatter by the day. That was my point regarding the deal is that for such a potentially LARGE sellign drug it didn't get much more then TSPT got for an obviously much lower potentially selling drug.

ARNA got $50m upfront and $90m on approval just doesn't seem like a big deal in comparision to what TSPT got $55m ($25m + $30m on approval) + $90m (for some patent protection)

I would think that best case on Intermezzo is $100m - $200m a year if that and if you assume Lorcaserin can be $1b+ then you see why I would have expected a better upfront deal to lock in the rights - ARNA needs cash badly and it feels like the partner knew it and took advantage. There's not much argument that apples to apples TSPT wrang out a lot more cash per potential $1 annual sales.