Replies to post #100103 on Biotech Values

[DewDiligence]

MNTA owes MIT a small, undisclosed royalty on Lovenox sales; I estimate the royalty rate is about 1% and is almost certainly not more than 2%.

In the case with a sole generic (what we have now), the MIT royalty is tantamount to round-off error in MNTA’s net economic draw from Lovenox. In the case with multiple generics, the amount payable to MIT, although the same in absolute size as in the single-generic case, is non-trivial in a relative sense. For modeling the multiple-generic case, I use a 10% figure for MNTA’s royalty received from NVS net of the amount payable to MIT.