Replies to post #143382 on Biotech Values

[pcrutch]

I think one problem with the CVR is that if CELG takes a majority holding in it, it can force CVR holders to accept their average price. I guess it depends if CELG was buying the CVR at higher prices etc. Need to find the exact wording, but I know there was a backdoor for Celgene.

There is also a payout for revenues

Net Sales Payment: Payment to CVR holders based on Abraxane’s net sales for the year (this extends by default through December 31, 2025, renewable each year until 2030 unless the net sales have not been greater than $1 billion):
2.5% of net sales between $1 and 2 billion
5% of net sales between $2 and 3 billion
10% of revenue > $3 billion

[ghmm]

CELGZ:

I am just now getting to doing more research on the CVR and see it can be extremely lucrative if things go right!

Peter, do you happen to know if the Phase 2 Pancreatic results were published?

Pancreatic cancer seems to be a high risk area. I don't do much oncology investing and am just getting familiar with Abraxane. I see its supposed to penetrate the stoma to reach the tumor. My limited knowledge of Pancreatic cancer comes from Halozyme and they have talked a lot about that being a major obstacle to treatment of pancreatic cancer. There was a nice article a while back with some animal data talking about how their PEG-PH20 was able to do that and show a substantial benefit.