As expected, or not-expected (whatever), Sanofi did not give any update on 4Q performance or how will 2019 shape (related to REGN collaboration). Other than blah, blah, blah,...that everybody knows.
The IDEA for broad COLLABORATOR(S), for US-bio company is EXCESS of the EX-US market. IF you have great compound/drug...and you can not market it outside US, what is idea to have partner? To pay for US-clinical trials? Investors and VC will be more than happy to pay for that.
AS history (those who follow sector more than few moments) teach as that 5-10% US royalty can not cover even toilet paper spent during R&D , unless pharma finance EVERYTHING (but also book whole profit)!
In that light, for years I was disappointed with Sanofi performance outside US (other than generous $$$ supply during R&D period, REGN can not complain about that). Praluent, Kevzara, Dupi, ....so far performance in ex-US market 200% support my view.....are good examples.
When REGN's SHs calculate profitability of the Sanofi drug-marketing segment of ex-US part ....well, I am glad that my math capability does not surpass third-grade level. Too bad that repayment of the 50% R&D expense is not tide to ex-US profit share, instead TOTAL profit. |
