Replies to post #169747 on Biotech Values

[zipjet]

VPHM reads on GENT future:

The VPHM buyout is instructive on the value of orphan drugs. I owned Lev Pharmaceuticals when VPHM bought it out to get Cinryze.

Shire is paying 10x revenue ($405M) of Cinryze to get the company.

Cinryze is the only profit center for VPHM, and carries a significantly higher COGS% (~24%) than defibrotide (~12%) and df COGS% will drop a lot as sales and pricing ramp unlike Cinryze.

Another contrast is that df revenue is growing faster.

GENT will get bought out at some point and this is an interesting comparator.

[DewDiligence]

The VPHM buyout gives Shire the distinction of having two drugs for HAE: one from Jerini (Firazyr) and one from VPHM (Cinryze).

[biocqr]

IDRA > Viropharma's former CEO hired as CEO of Idera...

Idera Pharmaceuticals Names Vincent J. Milano Chief Executive Officer

http://finance.yahoo.com/news/idera-pharmaceuticals-names-vincent-j-213000470.html

[DewDiligence]

SHPG acquires (private) Meritage Pharma for $70M cash plus contingencies:

http://finance.yahoo.com/news/shire-acquires-meritage-pharma-120000158.html

Shire plc and Meritage Pharma, Inc. announced today that Shire has acquired Meritage, a privately-held company, for an upfront fee of $70 million and additional contingent payments based on the achievement of development and regulatory milestones. With the acquisition, Shire has acquired the global rights to-and undertaken the further development of-Meritage's Phase 3-ready compound, Oral Budesonide Suspension (OBS), for the treatment of adolescents and adults with eosinophilic esophagitis (EoE), a rare, chronic inflammatory gastrointestinal (GI) disease.

…Shire obtained the rights to acquire Meritage in connection with its acquisition of ViroPharma in 2014.