Replies to post #127952 on Biotech Values

[HattieTheWitch]

The settlement terms might be something along the lines of the following... Amphastar pays MNTA a 20% royalty on sales.

Wouldn't Amphastar have to sell an enormous amount of product before such an arrangement would offset MNTA's loss of profit sharing from NVS?

[iwfal]

Amphastar delays launching until the earlier of 2014 or FDA approval of a third generic; and ii) Amphastar pays MNTA a 20% royalty on sales.

1) Should that be ammended to "Amphastar delays launching until the earlier of 2014 or FDA approval launch of a third generic; and ii) Amphastar pays MNTA a 20% royalty on sales.

2) What do you think would be the split on the 20% royalty between Sandoz and Momenta?

[DewDiligence]

Re: MNTA-Amphastar settlement musings (revised for iwfal’s changes)

If the Judge allows limited expedited discovery (which will be decided on or about Oct 20), I think the suit will probably be settled out of court. The settlement terms might be something along the lines of the following: i) Amphastar delays launching until the earlier of 2014 or FDA approval and launch of a third generic; AND ii) Amphastar pays MNTA a 20% royalty on sales (of which no portion goes to NVS).

The FTC will challenge the first provision, of course, but the FTC has not been able to make such challenges stick in court.