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linhdtu

07/29/12 7:02 PM

#9439 RE: DewDiligence #9435

Dew please explains your logic.
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WPI is selling enough Lovenox to avert a breach-of-contract suit from Amphastar, but not enough to ruin the company if Amphastar/WPI end up losing the patent suit.
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I am not good with numbers so please bear with me . Before Ampha/WPI came on the scene, mnta because of its profit sharing with sandoz was adding something like 100M/qtr to its coffers and now it is running a little loss, so there is a delta of around 100M$ negative for mnta.

So even if Ampha/Wpi sells 1M$ worth of its a-enox a yr or a qtr, mnta already has suffered 400M$/yr because of the reversion from profit sharing to royalty.

So it can't be that in the case Ampha/WPI lose the trial and I am positively convinced they will (in due time) the penalty paid is somewhat tied to and proportional to the amount sold illegally, as in " well we only sold 10M worth of a-enox so we'll pay you 3 or N times that amount in damage".

I realize the damage amount will be determined by the judge, but the gist of my question remains the same. How is it that the damage award is related to the amount sold illegally or could it be that the outsize loss for mnta in this case is due to mnta signing such a lopsided contract with sandoz ie due to mnta's own stupidity or desperate situation at the time of the contract agreement (because obviously the copax agreement with sandoz is quite different from the lovenox one) and thus ampha/wpi are not responsible for the hundreds of millions loss of income suffered by mnta in this case.
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pollyvonwog

07/31/12 11:16 AM

#9449 RE: DewDiligence #9435

WPIs 10% of the market approach is certainly curious. I've also heard that Sanofi has been unexpectedly ultra aggressive with pricing, which may be contributing to WPI not wanting to go to far in the retail (not sure I buy that reasoning). But I certainly think the wait and see theory holds water.

I also know that WPI is doing as little as possible with regards to lovenox. They've been very hands-off thus far.

Also, WPI seems pretty confident they would not be liable for any damages per their contract with Ampha. Is that confidence unfounded as clearly if MNTA did win the patent trial, Ampha would not be able to pay. I guess I'm not exactly sure as to how the courts would go after WPI.....

Also, what the heck happened to that $200m in product that was "about to expire"??!?
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DewDiligence

08/01/12 12:02 PM

#9462 RE: DewDiligence #9435

Might a director of WPI be worried about MNTA’s lawsuit? Fred Weiss sold $2.3M of WPI stock two days ago after exercising options that didn’t expire until mid 2014:

http://www.sec.gov/Archives/edgar/data/884629/000117911012012016/xslF345X03/edgar.xml