Replies to post #129829 on Biotech Values

[y3maxx]

zipjet et al,

...The M enox deal is not fair or equitable for MNTA...It is what it is....the M copax deal is much improved ....but under the circumstances and in the long run MNTA is earning very large "cha ching".

...Let the lawyers beat up on Ampha/Watson, why, because there are new deals to be had now.

.....MNTA does need to protect itself from a Sandoz/NVS low ball takeover...

y3

[iwfal]

I also expect that the royalties will be divided under provisions of the contract with Sandoz. I have asked if we know those terms and not gotten an answer. Best guess is that the royalties get divided just like profits. IF they are NOT divided then I would think Sandoz gets all of the royalties.

Possible - but I doubt that the patent-suit split is just the same as profit just because that would highly disincetivize Momenta both in the suit and leading up to the suit (some of the patents were written well after the agreement with Sandoz was signed). Not something Sandoz would want to do when they too stand to lose from entry of a generic on the market. And I would expect that Momenta would have made exactly this argument when they were negotiating the original agreement.

To say this another way - the whole royalty agreement was clearly designed to very significantly incentivize Momenta to do the right things to protect the franchise. I would expect that something similar occurred with the rewards from a patent suit.

[DewDiligence]

I also expect that the royalties will be divided under provisions of the contract with Sandoz… Best guess is that the royalties get divided just like profits. IF they are NOT divided then I would think Sandoz gets all of the royalties.

What the NVS-MNTA 2003 Lovenox agreement says on this matter, if anything, is close to irrelevant. Why? Because there can’t be an out-of-court settlement of the lawsuit against Amphastar unless both NVS and MNTA agree to the settlement terms.

From a practical standpoint, therefore, the division between NVS and MNTA of the economic spoils from the settlement will be negotiated de novo.