Replies to post #17759 on Biotech Values

[DewDiligence]

GTCB 1.75 +25% (eom)

[DewDiligence]

More on GTCB ATryn partnership:

[From Yahoo GTCB board]

>>
Re: Transfer price
by: DewDiligence
11/01/05 11:55 am
Msg: 23830 of 23830

>Transfer price is another important metric that we’re unlikely to ever hear about. I guess we’ll have to wait for future ‘bottom lines’ to get a clue if this is a good deal or not. With LEO being private, we’re not likely to learn much more from their side.<

The industry-standard transfer price in these kinds of deals tends to run about 110% of fully-allocated COGS, so I think it’s reasonable to use this number as a yardstick. However, royalty rates on end-user sales vary widely.

[Posted as a reply to: Msg 23827 by svarten98]
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[DewDiligence]

GTCB partnership update:

--The $2M up-front fee from LEO is non-refundable. Although this amount is small, it’s nice that LEO is sufficiently confident in ATryn’s timely approval that it is willing to take the risk.

--More details on the partnership agreement will be made available in future SEC filings.

--Some discussion of the partnership agreement will take place on GTC’s quarterly CC tomorrow morning (10:00 a.m. ET).

Source: Tom Newberry