Replies to post #105475 on Biotech Values

[rkrw]

You guys are way overthinking this. MNTA has more than enough money to spend on generic Copaxone and the spend required is probably a lot less than you think. And they have Novartis behind them. It's a non factor. I'd look for Teva to price just 5-10% below Sandoz should they receive approval.

[ilpapa]

Scorched earth policy, eh? Plausible, sadly.

[exwannabe]

MNTATEVA re: "My fear is that Teva might price their generic upon approval at very low levels"

So they would toss a bunch of earnings away just to spite MNTA?

This is simple. With only a few players, TEVA will price about the same as Sandoz. They might even play the airline game and try going higher a bit to see if MNTA follows, and if Sandoz does not follow go right back down.

Pricing at a non-trival discount forces Sandoz to match (else Sandoz would lose all market share). And all are losers.

As long as we have a very high barrier to entry this will prevail. The Sandoz revenue will drop to 1/3 prior levels on the same price structure (assuming SA launches, not a certainty by far as long as the branded is selling). And we can just do math from there.

All this "TEVA is attacking MNTA in order to protect Copaxone" is absurd.