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Replies to post #136730 on Biotech Values

Replies to #136730 on Biotech Values
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marthambles

02/09/12 8:50 AM

#136732 RE: iwfal #136730

WPI clearly is not playing with a full deck (or being pushed over the cliff by Amphastar).



Watson has a full indemnity from Amphastar. If they have satisfied themselves with Amphastar's ability to make good, Watson is taking little risk in moving full steam ahead IMO.
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jbog

02/09/12 9:01 AM

#136733 RE: iwfal #136730

WPI clearly is not playing with a full deck



Why do you say that? WPI has repeatedly claimed that it has full indemnification from any liability.

Do you not believe them?
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DewDiligence

02/09/12 9:12 AM

#136736 RE: iwfal #136730

Agree—this is the worst-case scenario. The Lovenox patent-infringement lawsuit still holds some value for MNTA, but the lawsuit’s NPV for MNTA is greatly reduced with a settlement presumably off the table.

Support for the shape price will now have to come from the fact that the enterprise value (market cap less cash on hand) is very low, even if one values the NPV of the Lovenox royalty stream very conservatively.