Replies to post #113385 on Biotech Values

[10nisman]

Current overhead expenses. I have been using quarterly overhead at ~$20MM. I think it will be closer to $25MM by the end of '11.

Overhead expenses? A good amount of these expenses are operating expenses (i.e., salaries paid to scientists, R&D development costs, royalties paid to MIT for mLovenox, etc.).

If MNTA wants to build out its FOB platform its going to need to investment money in R&D, scientists, etc. I think you should be looking at this additional spend as an investment vs. additional overhead expenses.

10nis

[DewDiligence]

I have been using quarterly overhead at ~$20MM. I think it will be closer to $25MM by the end of '11.

Such a distinction is inconsequential in the overall scheme of things. In the unlikely (IMO) event that Teva gets FDA approval for Lovenox, MNTA will presumably adjust its operating costs to a level commensurate with lower revenues.

[DewDiligence]

I have been using quarterly overhead at ~$20MM. I think it will be closer to $25MM by the end of '11.

You were much too high—it will be $15-18M per quarter, according to today’s CC.

[DewDiligence]

MNTA’s 3Q11 cash operating expenses excluding R&D revenue (which is essentially reimbursement from NVS) and excluding MNTA’s royalties to MIT* were $17.5M, according to today's CC. This amount is within the $15-18M quarterly range that MNTA has given in prior guidance (#msg-65880685).

*3Q11 royalties to MIT of $2.9M were boosted by the $10M milestone payment MNTA received from NVS for the first anniversary of the Lovenox launch; they will be lower in subsequent quarters.