Replies to post #105485 on Biotech Values

[zipjet]

The other day I laid out the scenario that Momenta's typical 10% sales royalty IS equivalent to 45%/50% of Sandoz's profit.

Then we have no reason to be concerned about a Teva generic approval because a 10% royalty is equal to 45-50% of profits.

;-)

Jbog, that is clueless - DD already debunked that one.

You sure have a way of bringing out my dark side.

ij

[biomaven0]

Momenta's typical 10% sales royalty IS equivalent to 45%/50% of Sandoz's profit

That implies that Teva's margins would be only 20%. That's ridiculous - those are the sort of margins they enjoy on regular generics, not on an oligopoly. I'd bet on margins in the > 60% range.

Peter