Replies to post #123324 on Biotech Values

[DewDiligence]

Given that the TMC435 deal was struck in 2004 when the drug was only at the pre-clinical stage and Medivir only got $10M up-front, I can't imagine the royalty is that great. Hopefully they are at least due low to mid-double digit royalties, though. Do you have any idea on the exact rate they may be due?

I haven’t researched it, but I would expect the royalty rate to be in the low-to-mid teens. Single-digit royalties are typical for drug-delivery deals and technology-platform licenses, but they are rare for full-fledged NME’s.

Medivir has exclusive rights to market TMC435 in Nordic countries but I assume that is a very small portion of the HCV market and probably not exactly a huge opportunity.

The four Nordic countries (Sweden, Denmark, Norway, Finland) have a combined population of 25M, which is about the same as Texas.