KOWA is different. AMRN recognize all revenue and pay all cost. In exchange for Kowa Pharmaceuticals America, Inc.’s co-promotional services, Kowa Pharmaceuticals America, Inc. is entitled to a quarterly co-promotion fee based on a percentage of aggregate Vascepa gross margins increase from the high single digits in 2014, to mid-teen percent levels in 2015, and to the low twenty percent levels in 2018, subject to certain adjustments.
Not a bad deal, much better than Arena-Eisai:
Arena is responsible for development and associated expenses. Arena received $210 million inc. the delivery of product supply for launch.
Arena sell lorcaserin to Eisai for a purchase price starting at 31.5% of Eisai's annual net product sales, and the purchase price will increase on a tiered basis to as high as 36.5% on the portion of annual net product sales. Arena is also eligible to receive $1.16 billion in one-time purchase price adjustment payments based on annual sales levels of lorcaserin.
Arena result: $210 million - development expenses + 31.5%-36.5% of net revenue (min. $1.16 billion)
Meanwhile:
Eddingpharm will be solely responsible for development and commercialization activities in the Territory and associated expenses. Eddingpharm will be responsible for preparing and filing regulatory applications in all countries of the Territory at Eddingpharm’s cost with our assistance. Amarin receive $169 million, meanwhile does not have any cost
Eddingpharm will reimburse Amarin on a cost plus administrative fee basis for commercial product sold.
Eddingpharm will pay to Amarin tiered double-digit percentage royalties on net sales of Vascepa in the Territory escalating to the high teens.
Amarin result: $169 million + COGS (it is currently 35% of net revenue and won't be lower than 20% ever) + administrative fee + 10%-19% (?) of net revenue. The result is 30-54% (depends on the COGS and royalty) + admin fee.
