Replies to post #115661 on Biotech Values

[DewDiligence]

Re: Indemnification against liabilities from Copaxone patent litigation

A question that comes up from time to time is whether MNTA incurs any risk of damages arising from the Copaxone patent litigation. The answer is no because NVS has indemnified MNTA against such liabilities. Here’s the relevant citation from page 14 of the MOU between NVS and MNTA on 7/25/06 (exhibit 10.3 to MNTA’s 2Q06 10-Q report):

http://sec.gov/Archives/edgar/data/1235010/000110465906072600/a06-21723_1ex10d3.htm

Sandoz shall indemnify Momenta (and the Momenta Indemnified Parties, as defined in the US-ENOX Agreement) against all losses, costs, damages, judgments, settlements or other expenses (including all reasonable attorneys’ fees, experts’ or consultants’ fees, expenses and costs) (“Liabilities”) awarded to a Third Party or awarded to a Third Party against any Momenta Indemnified Party, or that may be incurred or paid by any Momenta Indemnified Party in the defense or compromise of legal or equitable claims asserted by a Third Party, resulting from (i) patent litigation related to the Product(s), (ii) Third Party claims arising out of activities related to the Products, (iii) property damage or personal injury (including death), or other product liability, relating to the Products, and (iv) breach of Sandoz’s representations, warranties, covenants, obligations or agreements.

In other words, this is one thing MNTA investors do not need to worry about.

[DewDiligence]

Judge Denies Teva’s Motion to Dismiss Charge of Inequitable Conduct in Copaxone Patent Case

[The Court scheduled a separate mini-trial starting 7/11/11 on MYL’s inequitable-conduct argument against Teva; the ruling in this mini-trial will presumably dictate whether NVS/MNTA can prevail against Teva on the inequitable-conduct argument, which is one of four arguments NVS/MNTA and MYL are pursuing in the Copaxone patent case (#msg-56147443). The main trial for the arguments other than inequitable conduct will begin on 9/7/11, as previously announced.]

http://finance.yahoo.com/news/Mylan-Defeats-Tevas-Motion-prnews-486671847.html?x=0&.v=1

›Friday June 17, 2011, 4:18 pm EDT

PITTSBURGH, June 17, 2011 /PRNewswire/ -- Mylan Inc. (Nasdaq:MYL) today confirmed that the U.S. District Court for the Southern District of New York has denied Teva's motion for a summary judgment finding of no inequitable conduct in relation to Copaxone®.

In addition, the court set a start date of July 11, 2011, for the trial regarding Mylan's inequitable conduct affirmative defense. The remaining issues will be tried beginning on Sept. 7, 2011.‹