Replies to post #113555 on Biotech Values

[DewDiligence]

Re: How much Lovenox is in the channel?

what is the typical level of stocking for a drug like lovenox? about a month?

The answer depends in part of the nature of the contractual relationship NVS has with its Lovenox wholesalers/distributors. In general, the tighter the contractual relationship, the less inventory is needed in the channel to avert a supply disruption.

If the relationship were such that the wholesalers/distributors were contractually required to furnish NVS with information on channel inventory and end-user demand, I would have said that two weeks in the channel was sufficient. However, NVS has not disclosed the details of its relationship with Lovenox wholesalers/distributors, so I think it’s reasonable for investors to assume NVS is aiming to have a minimum of four weeks in the channel.