TO ALL:
Regarding the two press releases from MLNM today:
mlnm.com
mlnm.com
In reading these, it appears to me that MLNM is first of all focusing its efforts on two areas: weight regulation and inflammation (according to CEO Levin). But, while there is much talk about all the obesity-related genes which MLNM has identified, and the potential for the development of therapeutic targets, there is this quote in regards to one of their research alliances, which ended earlier this year after six years:
"While [Hoffmann-La Roche] is pursuing the use of MC4-r for the identification of obesity therapeutics, Millenium retains the rights to use this technology for the discovery of compounds that induce weight gain."
So, my interpretation is that MLNM has relinquished the pursuit of anti-obesity compounds to Roche (although my understanding is that they would receive royalty or licensing fees for any drug Roche develops and markets as a result---I'm not sure about this, though---anybody know for sure??). But MLNM can develop drugs which can be used as adjuncts in conditions associated with cachexia (notably, cancer and perhaps eating disorders).
To me, the upside is that this is a wide open market, but the downside is that they have given up a much larger market (obesity being as prevalent as it is). Of course, in cachexia-associated conditions, they may have substantial pricing power considering the gravity of the disease (cancer). And the anti-obesity field is likely to have competition (AMGN is in Phase 2, I believe, with Leptin), thus putting downward pressure on pricing power of any anti-obesity product developed. But, on the other hand, who of the roughly 100 million obese Americans wouldn't like to be thinner, and who wouldn't be willing to spend, say, $500 a year to do so? If half would and could, that's $2.5 billion annually in gross revenues!
The patent news sounds promising in terms of ensuring a steady stream of licensing fees and royalties, a strategy MLNM seems to have raised to an art form.
Anybody else with alternative interpretations???
Thanks,
Walkingshadow |
