KemPharm Inc. (KMPH)

[dia76ca]

Target price of $6.41must imply some value for Apadaz...sales of which could start any time in October. Net revenues could be very substantial.
"Pursuant to the License Agreement, KVK has agreed to pay us pre-launch payments
and cost reimbursements of an estimated $3.4 million, which includes a
pre-launch payment of $2.0 million within 10 days of the achievement of a
specified milestone related to the initial formulary adoption of APADAZ, or the
Initial Adoption Milestone. In addition, KVK has agreed to make additional
payments to us upon the achievement of specified sales milestones of up to $53.0
million in the aggregate. Further, we and KVK will share the quarterly net
profits of APADAZ by KVK in the United States at specified tiered percentages,
ranging from us receiving 30% to 50% of net profits, based on the amount of net
sales on a rolling four quarter basis. We are responsible for a portion of
commercialization and regulatory expenses for APADAZ until the Initial Adoption
Milestone is achieved, after which KVK will be responsible for all expenses
incurred in connection with commercialization and maintaining regulatory
approval in the United States."