Replies to post #136755 on Biotech Values

[DewDiligence]

Agreed that a Court-ordered royalty on Amphastar/WPI’s sales payable to NVS/MNTA is a possible outcome in lieu of a permanent injunction if the Court rules in favor of NVS/MNTA on patent infringement. However, a Court-ordered royalty would merely cover future sales, so an award of damages for past sales would still pertain.

[iwfal]

MNTA

They could simply impose a court-set royalty for future use of the patent.

Two problems with this:

1) patents are a constitutionally protected monopoly. And there is no question that even 80 pct royalties is not as good as withdrawal. So i'd expect it to go to the USSC before such a settlement was imposed and agreed to.

2) even a complete withdrawal cannot compensate for entry of AG and lowered lovenox price going forward. So even with withdrawal and only 1x damages I'd expect royalties from other WPI drugs. I've seen at least one case where this happened and I'd expect it here.

And of course all the above plus payment for past damages are just for 1x damages.

I don't really expect 3x but I think 1.5x is quite possible. Note that WPI, if they lose, will lose a lot of money even at 1x damages. It is for this reason I said it was a dumb decision by WPI.