Biotech Values

[dangerM]

OCRX CVR details

Details have been posted on EDGAR now*.

So prior to a ph3 there will be dosing studies, but after that, the first milestone of 10mn is already for the enrollment of the first patient in the IV formulation, the second milestone of 15mn for the enrollment of the first patient in the oral formulation, the last milestone of 50mn is contingent on sales > $500mn reached before December 31, 2029.

The dosing study (and the completion of ph2) would have to take place before, but one does not have to wait until full enrollment

... so except for the suprisingly low sale price for a "5-7 bn U.S. market potential opportunity" (<- ahem, this is quoted from the MNK presentation quoted below) this sounds ok. Somehow this makes one wonder why there wasn't another bidder.

EDIT:
Wait, the ph2-study has/all ph2-studies have already been completed?? Naively, I'd say the first milestone should come within less than a year?


*

https://www.sec.gov/Archives/edgar/data/1274644/000119312517330241/d488989dex992.htm

MNK will invest to establish dosing ranges prior to initiating Phase 3 program

https://www.sec.gov/Archives/edgar/data/1274644/000119312517330223/d487980dex21.htm

“Milestone Payment” means, as applicable, (a) with respect to achieving the IV Milestone, an aggregate amount equal to $10,000,000, (b) with respect to achieving the Oral Milestone, an aggregate amount equal to $15,000,000 and (c) with respect to achieving the Product Sales Milestone, an aggregate amount equal to $50,000,000, in each case as may be reduced, as applicable in accordance with Section 5.18 of the Merger Agreement, by the Closing Shortfall or Measurement Date Shortfall, if any.

“IV Milestone” means the enrollment of the first patient in a Phase 3 Clinical Trial of an intravenous formulation of the Product by the Company, any of its Affiliates or their respective licensee or sublicensee with respect to rights to develop or commercialize the Product.

“Oral Milestone” means the enrollment of the first patient in a Phase 3 Clinical Trial of an oral formulation of the Product by the Company, any of its Affiliates or their respective licensee or sublicensee with respect to rights to develop or commercialize the Product.

“Product Sales Milestone” means the first occurrence of the achievement of cumulative Product Sales in excess of $500,000,000, by any Selling Entity or any combination thereof.