Amusingly, the sell-side analyst from Janney asked if ADXS's "double-digit" royalty rate from AMGN is as much as 50%. (The actual upper bound hasn't been disclosed.)
I guess technically they could be as high as 99% .
One thing I see a lot of people mistake in thinking a royalty is equivalent to a percentage ownership of a drug when in fact in the drug industry they are usually on the gross sales which are must better than the equivalent percentage ownership of the asset! There is less risk in cost/marketing being much higher than anticipated and (though beyond my knowledge) some tax advantage if ownership is structured as a Royalty Trust. I actually love the royalty model. Here is a brief description of some of the types of royalties from a Gold stock I owned (very long time ago) http://www.royalgold.com/business-model/royalties/
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