Replies to post #127111 on Biotech Values

[tinkershaw]

To what extent could Watson be on the hook as well?

Watson is jointly and severally liable, which means is MNTA gets a verdict, MNTA is going after the deepest pockets, Watson. Watson's remedy is to then go after Amphastar who they have a contractual indemnification.

So Watson is as liable as Amphastar, but really, Watson has more to lose and less to gain, as Watson is certainly a company that such a judgment can be collected from, whereas with Amphastar, they do not have easy access to public markets to raise funds, and probably do not have the sort of finances to enable them to pay a more catastrophic judgment. Thereby, it is what is known in economics as a moral hazard: take a risk on someone else's dime.

Because of this, Watson will almost certainly (unless they are incompetent) be playing a large role in deciding whether to launch at risk or not as the interests of the parties are not aligned here, and MNTA's damages are in the hundreds of millions of dollars (not the usual patent damage case - as damages are catastrophic even without the threat (as small as it may seem sometimes) of treble damages.

But, legally, that is an interesting question, should Ampha/Watson be liable for the unique contractual damages that MNTA will suffer because of patent infringement? Always something to argue in a lawsuit, some niceties. But I am not going to argue this beyond that, as it is of no productive use. Just a potential future issue should MNTA be fortunate enough to be in the position to argue its damages.

Tinker

[pollyvonwog]

I don't think enox is that important to Amphastar's bottom line. It seems they already have a line of drugs making them dough:

Amphastar Pharmaceuticals wants to help drugs help themselves. A maker of injectable and inhalant drugs and drug delivery systems, the company focuses on drugs that are difficult to manufacture or can be improved with new delivery systems. Amphastar's products include Amphadase (increases absorption and dispersion of injected drugs), Cortrosyn (tests for adrenal gland disorders), and Naloxone (reverses the effects of opioids like painkillers and other narcotics). It also manufactures the branded asthma drug Primatene Mist, which is sold over the counter. Founded in 1996, Amphastar manufactures and develops many of its products through its subsidiaries Armstrong Pharmaceuticals and International Medication.

The company's Massachusetts-based Armstrong Pharmaceuticals subsidiary focuses on manufacturing metered dose inhalers used to administer respiratory drugs for asthma and obstructive pulmonary disease. Its California-based International Medication systems subsidiary, on the other hand, makes pre-filled syringes and vials that are filled with injectable and topical drugs. Its products range from Vitamin K administered to newborn babies to lidocaine used in emergency medicine (Lidocaine is a topical local anesthetic that can be applied internally to the larynx/trachea, urinary tract, and other areas.).

While it focuses on developing and marketing its own pipeline of products, Amphastar does, from time to time, partner with other drug makers through both in-licensing and out-licensing agreements. In addition, the company also offers contract manufacturing services that include labeling and packaging, cold storage, and aseptic filling.