Replies to post #106936 on Biotech Values

[esimae]

Thanks for your reply.

I looked through the NOV Q3 media release and on page 68 it shows Sandoz sales and operating income differences from Q2. It shows a sales difference of +$204MM and a +$128MM operating earnings change. Sandoz numbers on pages 66 and 67 show the vast majority of change is due to US M-L sales. Despite some moving parts this profit margin seems huge for a ramp-up considering the profit split of 20%+.

My question is could there be a situation where Sandoz/NOV books revenue from M-L in Q3 and some or most of the MNTA profit share is expensed in Q4. Otherwise profit margins must be 70%-80%+ from the get go.

Sorry if this is more confusing.

[Regulardoc]

I spent a bit of time looking at the NVS release on its website, though at time the print size was a bit of a challenge for my old eyes.

If I am interpreting things correctly, the overall cost of goods sold by corporate NVS for the recent quarter was around 30% and the COG for Sandoz for the third quarter was around 53%.

Does this change any expectations for COG for enoxaparin and MNTA's resultant share? Also, is MNTA's share predictated at all on Sandoz "operating margin" rather than COG for that single product?

Thanks.