Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: schzammm who wrote (6119)	4/9/2002 9:02:39 PM
From: Miljenko Zuanic	Respond to of 52153

This sound as very good deal. <<Roche, which has exclusive worldwide marketing rights to the drug, will contribute about 70 per cent of the development cost and will also pay Isotechnika a percentage of gross profits.>> If percentage of the gross profit is 20% or better, than it is definitely good deal. Miljenko

To: schzammm who wrote (6119)	4/9/2002 10:43:54 PM
From: Biomaven	Respond to of 52153

schzammm: <Isotechnika> Roche is actually a reasonable partner in this field - we haven't seen similarly egregious behavior on their drug partnership side that we saw with IGEN. The $215m is denominated in biobucks. Without the details it is pretty meaningless - we don't know how much is for, e.g., sales milestones which will only be achieved if the drug is very successful in multiple fields. Once they publicly file the (elided) agreement (they are a Canadian company so I don't know if they will) you might get a better sense of at least how many milestones there are and whether any are sales-based. The other key issue is the royalty rate - I think Miljenko is being optimistic with a 20% rate given that the drug is still early Phase II. The dynamic here is that the pharma partner wants to keep the details quiet. The biotech will typically "signal" some degree of detail to analysts. ("High teens?" "Yes, that's about right"). Peter

To: schzammm who wrote (6119)	4/10/2002 10:02:42 AM
From: Biomaven	Read Replies (1) \| Respond to of 52153

<Isotechnika> I looked again at the Isotechnika drug, which is a cyclosporine analog that looks to have a clearly better therapeutic window. Cyclosporine is a better than $1 billion drug despite its known toxicity, and if this new candidate's results hold up in the clinic it will completely replace cyclosporine. There is a detailed presentation describing the pre-clinical and some clinical results at: newswire.ca With some Roche muscle behind them the trials should proceed much more quickly. Note also that this drug is a sleeper psoriasis candidate as well - cyclosporine works very well in psoriasis but the tox concerns prevent its widespread use. Peter