Replies to post #101285 on Biotech Values

[biomaven0]

The net effect of the past and future reimbursements is that MNTA will end up paying 50% of the overall development costs of the Lovenox program.

Is there a disclosure to that effect? I glanced through their filings and could find nothing definitive about how much they have to reimburse. I couldn't find their original contract with Novartis - only the subsequent 2007 contract regarding ENX in the EU and Copaxone.

Here are some extracts from that latter document that are likely relevant:

“Profits” are equal to Net Sales (defined consistent with the explanation attached as Exhibit A, provided, however, that Third Party Royalties shall be treated as provided below) minus Cost of Goods Sold for units sold; (i) regarding CPX: minus [**]% of the Net Sales minus any payments pursuant to milestone lettered 1.c. (as described below), (ii) regarding [**]: minus [**]% of the Net Sales, (iii) regarding [**]: minus [**]% of the Net Sales, and (iv) regarding ENX, minus [**]% of Net Sales minus any payments pursuant to milestone lettered 2.b. (as described below).

and

Cost of Goods Sold

Cost of goods sold comprises all the costs incurred in producing goods for sale:

· variable and fixed production costs including factory overhead

· purchase price variances

· inventory revaluations, inventory destroyed or written-off

· change in the value of inventory provisions and

· production variances

· payments related to product rights, dossiers, patents, trademarks and registration costs that do not meet the criteria for capitalization

· amortization and impairment losses related to marketable products, i.e. product rights, patent rights, trademarks and core development technologies

· expenses for the use of intellectual properties from 3rd parties

· Other non-production related cost of goods sold that cannot be allocated to any other line of COGS

Peter