Applied DNA Sciences Inc (APDN)

[Parkmart]

Something we might have overlooked in the nuances of the Colorcon contract. We did receive a milestone payment of 750k in the 2nd Q and it was added to deferred ( or unearned) revenue.
To receive a milestone payment, Colorcon has to sign on a pharma or nutraceuticals company.

“Colorcon has teamed up with Applied DNA Sciences to use its DNA tags in pharmaceutical oral dosage formulations, firming up an option it took on the technology last year.

Under the terms of the deal, Colorcon has taken an exclusive license to use APDN’s DNA markers and authentication technologies in film coatings for tablets, as well as a non-exclusive license for their use in inks and colorants. Shares in APDN were up more than 10% after the deal was announced.

Financial terms of the deal are not being disclosed, but APDN is getting a signing fee and also stands to get a milestone payment if a pharma or nutraceutical product is approved that incorporates the tags in its formulation. APDN will also supply taggant and authentication materials to Colorcon in exchange for long-term royalties on the sale of Colorcon products that use the DNA markers.”