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Biotech / Medical : ARIAD Pharmaceuticals
ARIA 23.990.0%Feb 17 4:00 PM EST

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From: Biomaven5/10/2016 5:33:53 PM
4 Recommendations

Recommended By
glass 0.5 full
pgo-neil
sjemmeri
tktom

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Very nice deal with Incyte.

It's hard to break down how much they paid for the infrastructure vs. paying for Iclusig, but it is important to remember that they only bought under 15% of the drug. Assume Europe is about 25% of the value of the drug, and then they bought about half of that (maybe less) given the very high royalty rate. Plus Ariad (via a buyout) gets a call option which is certainly worth something. If the upfront $140m was all for Iclusig (hard to know) that would easily value it at over $1 billion if my back-of-the-envelope calculation is about right.

Peter
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