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Biotech / Medical : Millennium Pharmaceuticals, Inc. (MLNM)
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To: chris dawson who wrote (43)9/25/1997 12:34:00 AM
From: biowa   of 3044
 
Chris,

Sorry for the tardy response.

>>I immediatley came to SI to look it up and of course it was here with plenty of experts! Their goal seems to gain partnerships with drug companies for research, when they come up with discoveries how are they going to make money? Do the drug companies pay for the research or does MLNM get a cut of drug profits that they help discover?<<

Plenty of experts? Hope you're not counting me in that group.

As for revenue, in the current alliances, the pharma both helps pay for research expenses and get milestones/royalties on drugs developed by the pharma partner. In addition, MLNM has retained MANY of the rights to genes that are developed under each alliance (it varies by deal, but generally the pharma gets at least the small molecule rights, while MLNM retains some combination of protein therapeutic, gene therapy, antisense, diagnostic rights). You might compare it to the deal Microsoft struck w/ IBM, where they ended up retaining the rights to DOS.

It's these retained exclusive rights that are at the heart of the Millennium BioTherapeutics spin-off that they just partnered. Expect another such deal by the end of the year (maybe Predictive Medicines?).

This is the positive side. Obviously there's a negative side or the price of the stock would be infinity. As you kick the tires on this one, you'll want to check out the burn rate, as well as the intellectual property rights issues in genomics.

Hope that helped a little.

biowa
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