US$67 billion worth of biosimilar patents expiring before 2020. 2% royalty of $67 billion = $1.34 billion per year in EARNI
see article on gabionline
Twelve biological products with global sales of more than US$67 billion will be exposed to biosimilar competition by 2020, with Enbrel (etanercept) whose US patent has been extended until 2028, scoring global sales of US$7.3 billion by December 2011; coming in second after Humira (adalimumab) with global sales of US$7.9 billion .
Licensing their technology to every generics maker in the world will allow them to tap into this potential bonanza without having to develop or sell the drugs themselves.
2% royalty of $67 billion will make Protalix $1.34 billion per year in EARNINGS. If the generic drug makers charge 50% of Big Pharmas prices, Protalix would still make $670 million in earnings or $6/per share by 2020.
With generic drug makers using this technology, Big Pharma will have no choice but to license it themselves or their margins will be destroyed by their competition.