I freaking hate GSK. They are a bunch of #$%$, and they don't deserve to profit from SRPT's success, because their success was accomplished while GSK did everything in their power to undermine SRPT. And I do mean EVERYTHING.
If CG decides that working with the devil (No Pat, I'm not talking about you), he should drive a very hard bargain, or better, do whatever he does without GSK.
well, the classy thing a person would do would be to move aside.
But there are intellectual property rights. There are rights that go with that, and that includes royalties as well as defending the intellectual property in court.
(plus they want to extract some money here, right?)
they can get he ball rolling first as way way to potentially save on litigation costs or to ready themselves if it is approved. if they start now and do work with if ands and buts until then then they will have some idea of how things can be finished off if approved.
I can see this at worst hitting the market if approved by paying royalties while still litigating.
Strategy wise SRPT should wait till approval to negotiate that, in a stronger position. Beside they don't have the manufacturing capacity to supply the EU market in 2014 (likely at least in 15H1) anyway. If anything, is should be less than 10% of sales.
the path of least resistance here is for SRPT to pay royalties of some amount on EU sales.
It's not like they can play hardball and refuse to sell in EU and tell patients to take RNA's poison until the EU changes its mind.
They could litigate until who knows when, but that'd keep etep. off the market, too.
Perhaps they could get the royalties`back if the patent thing goes their way? (I'm no EU lawyer)
I like the idea. As a phase 3 trial will absolutely be required - just a matter of whether the phase three will need to be completed before or after approval, either way, if we could get an upfront payment, say 200M, then let GSK be responsible for scaling up manufacturing for Europe, I would accept 20% of gross sales with GSK responsible for manufacturing, and approval filings in Europe. This way, with the phase 3 trial and manufacturing scaleup costs already paid for, almost everything sold goes straight to the bottom line. Early profitability would make life very uncomfortable for the shorts and the share price would rapidly appreciate IMHO.
Sentiment: Strong Buy