Replies to post #105207 on Biotech Values

[mcbio]

Re: IMGN T-DM1 royalty rate

Is IMGN’s mid-single-digit royalty rate net or gross?

One pitfall of biotech investing is assuming that a royalty % quoted by management of the royalty recipient is net. More often than not, the figure disclosed to investors is actually gross.

For some companies this distinction is not material, but for companies that have high pass-though obligations to third-party licensors, the distinction makes all the difference in the world.

That's a very good question and I want to say it's net, but don't quote me on that. I'll defer to anyone who knows the answer with certainty.