Replies to post #146880 on Biotech Values

[mcbio]

I'd be very disappointed if CLDX got only $60-80 million upfront and less than a 50-50 split on profits.

$60-80M is a big chunk of change. I'd have no problem with that amount of up-front for 011. If you're expecting 50-50 split on profits, that would in all likelihood mean CLDX would have to co-develop 011 and share in costs. Don't think they want to do that. I'd be fine with high double-digits type of royalty (ballpark 20% at peak sales levels) with no cost obligations for CLDX going forward. A big deal would help validate the Phase 2b data and CLDX overall I think (think questions may remain after PFE pulled out of the rindo deal leaving CLDX with no partners).

[BTH]

Blade, I completely agree with you on this.

They need to retain as much as their best compound as possible. They should be working as hard as possible to unload Rindopepimut (if they even can) for some money. Hell.. they should be on the phone to Merck Kgaa at this point...those German Merck guys seem to want a piece of every crappy unproven compound and dole out plenty of money for them (not saying Rindo is crappy, but, you get the point).

I'd be very disappointed if they got $75 million upfront for '011. They'd piss through that rather quickly.

I would rather see them finance the company through secondaries and retain 100% of it, like Ariad has done with Ponatinib.