Replies to post #19405 on Biotech Values

[aslan2772]

"this design win ensures that SRDX remains a player in the DES arena."

A lubritious coating for the stent delivery system should be a smaller deal overall, in terms of royalties earned, than a drug-eluting coating. To roughly estimate the royalty, say SRDX earns 10% of the delivery system cost, which is just a fraction of the cost of the total stent system (maybe $250?). However, since SRDX got ripped-off by JNJ (est. 1-1.5% royalty on Cypher) for use of their Bravo drug-delivery coating, the royalties for the lubritious coating could have meaning, relatively speaking, if MDT were to capture a large market share. But, a large market share for MDT is unlikely IMHO. In this case, SRDX is likely to earn significant money from the deal, but probably only a fraction of what they recieve from JNJ, given the large market share currently held by Cypher. For example, if MDT captures 10% of the world market, and Cypher 50%, royalties from MDT would be one fifth of that from JNJ (which would add about 5-10% to SRDX's current bottom line, depending on reagent sales). I remind you this is a very rough calculation based on assumptions. Still, this is good news and perhaps others will license SRDX's lubritious coating for DES.

[shears]

SRDX remains a great growth play in the convergence of medical devices and surface coatings. The pipeline is outstanding. Non DES growth continues to churn along, which is often overlooked and as the MDT deal proves, there is more than one way to participate in the DES arena.

http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=8729479&tid=srdx&sid=872...