Millennium Pharmaceuticals, Inc. (MLNM) Message Board

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Biotech / Medical : Millennium Pharmaceuticals, Inc. (MLNM)

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To: PCSS who wrote (1658)	6/30/2003 6:55:45 PM
From: software salesperson	Read Replies (3) of 3044

6/30/03 velcade deal 1. 2 main objectives: retaining 100% of US market for all indications and being able to continue to invest in pipeline significant double digit royalties mlnm files in EU for mm; ortho for all other indications development sharing translates into 200 m in p&l support will enable mlnm to hit profitability objectives 2. q & a (i) why pick jnj? - - core values ; sense of entrepreneurship; 4 b oncology business; specializes in diagnostics; shares importance of biomarkers and transcriptional profiling; has 300 reps in Europe; wants to build oncology business long-term; strong regulatory outside US (ii) will profitability objectives be hit each year in 2003, 4, 5 , 6, or in toto? - - levin emphasized each individual year (iii) is the royalty rate around 25% ? - - no direct answer (iv) specific milestone guidance? - - 125 m for regulatory and sales success for mm; 330 m divided for individual additional indications; 65 m for overall level of sales, not tied to a particular indication (v) how book reimbursement? - - it will be strategic alliance revenue (vi) is the 40-45% reimbursement global in nature? – yes (vii) could 1st milestone be paid in 2003?- - no direct answer (viii) amortize milestones?- - upfront payments are amortized; all others will be recognized when realized (ix) is royalty rate fixed? - - higher rate at higher levels of sales success (x) who controls clinical development? - - mlnm (xi) 330 m broken out for different indications? - - yes, based on size of market (xii) since the 125 m looks like a slam dunk, did this payment buy down the royalty rate ? - - no (xiii) only velcade? how about other proteasome inhibitors? - - will include analogues as well (xiv) who will manufacture? - - 3rd parties (xv) will r&d expenses increase because it’s a global development program? - - no (xvi) in which countries in Europe will you retain co-promotion rights ? - - major countries; collaboration gives mlnm the opportunity to build a European operation if it so chooses (xvii) exit clause? change in control clause? - - no direct answer (xviii) does jnj retain right of 1st refusal if mlnm decides to co-promote in US? - - no plans to do so (xix) if mlnm wants to move quickly in development and jnj doesn’t, who decides, and if mlnm, will jnj still be obligated to pay 40-45% ? - - mlnm; jnj would still pay 40-45% 3.impressions taking jnj as a partner seemed to be a surprise. I suspect that since mlnm wanted to (a) retain ultimate control and (b) have the US market for itself, they agreed to a smaller upfront payment and greater potential milestones than would be expected otherwise. nonetheless, with EU approval looming, they will likely receive the lion’s share of the 125m soon enough. seems like a fair deal. sales

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