Replies to post #118175 on Biotech Values

[DewDiligence]

Glad you’re not worried about an AG. As Momenta gets above 50% and keeps increasing I start to have concern.

If SNY is capacity constrained (as sodrock says), launching an AG would reduce SNY’s Lovenox revenue and hence it makes no sense.

[sodrock]

ghmm,

remember and keep in mind that SNY has in place currently contracts with 4 major GPO's to purchase branded Lovenox. Unless TEVA says they will not have an entry then yes it is very possible for SNY to have a AG. Otherwise SNY is going to stay away.

In all likely hood SNY is going to hold onto those Sole Source contracts for as long as possible. We are talking hundreds of millions of dollars still with those contracts. This is something they have been very good at for many years competing against Fragmin and Arixtra.. SNY could write a book on hospital contracts; they have been so good in fact that many hospitals were upset they couldn't purchase generic because there were fed up with SNY.