First of all 7% is what is standard and Merial and IMU in the past have done this. It was presented once. I assume the novartis deal will be similar or more.
It is true Novartis can choose not to develop the product but you should note that Merial already knows how to do this so what is the point of not developing when you know a competitor such as Merial can just wait for the patent to expire and do it on their own. This product is not considered a trade secret anymore.
takeover?, page-11
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