OTCQX:MRVFF - Post by User
Post by
ValueCapon Oct 31, 2019 10:10pm
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Post# 30295224
Vimovo Royalty Possibly Staying Until mid to late 2021?
Vimovo Royalty Possibly Staying Until mid to late 2021? Yes, the earnings were great as noted. They executed on the synergies - SG&A way down from q2. On target to achieve the 7 million/ year savings as noted in June. A win for the company. Excluding vimovo US royalty, the company is cash flow positive, which was the goal.
What's underappreciated is what was mentioned in the quarterly call for the company. Dr Reddy's didn't launch "at risk" after the two patents got overturned in May by the October 20 dealine, meaning Dr Reddy's loses the 6 months of exclusivity, which lessens their likelihood to launch "at risk". Per the call - **The other patents won't be under litigation until mid to late 2021.**.
If the existing patent book is actually what's keeping Dr Reddy's out and they don't want to launch "at risk", then the royalty stays until 2021.
If that's the case, the stock should climb back to its Pre-May price and then some, given the synergies and further growth prospects.