Replies to post #108935 on Biotech Values

[DewDiligence]

Re: Tacit agreement with SNY on Lovenox pricing

[Rick Shea] also said they are not interested in going much higher and triggering an AG.

As previously noted (e.g. in #msg-55779320), these comments are directed squarely at SNY. It would be illegal for MNTA to fix Lovenox pricing with SNY, and an agreement about a possible AG launch by SNY is tantamount to an agreement on pricing; however, it’s legal for MNTA to throw out hints intended for SNY’s consumption on a conference call for MNTA investors, and that’s exactly what MNTA has been doing.

Bottom line: NVS/MNTA has a tacit agreement with SNY to split the US Lovenox market 50/50. Thus, NVS/MNTA will not attempt to raise their market share significantly higher than 50% even though they could easily do so if they wanted to.