Replies to post #107679 on Biotech Values

[DewDiligence]

ARIA—Is it possible that MRK is a potential suitor for 534, and is holding the [Rida] data to try and get an upper hand?

That MRK could conceal such a diabolical scheme from ARIA while negotiating a partnership deal is too far-fetched to consider, IMO. Regards, Dew

[biomaven0]

no 534 partner until after the release of the final Rida data. Why are the 2 interconnected?

One way they are interconnected is cash needs. If rida hits, then they are due a decent milestone and can rely on some near- and mid-term royalty payments to boot.

In any deal, there is an inverse trade-off between how much cash the partner needs to put up (in up-front payments, near-term development expenses and approval milestones) and the eventual royalty rate. If Ariad does not need as much cash from a foreign partnership, then they will get higher royalty rates.

Peter