Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

"Nothing in the document implies Alpha Sigma's royalty to IPIX will reduced for any compound that contains patented Brilacidin."

What would the nature of the product/drug be that Alfasigma could develop and bring to market that would trigger the clause in the agreement that would automatically reduce the royalty to 2%? It's there for a reason isn't it?
"During the Royalty Term, ALFASIGMA will pay IPI a royalty equal to 6% of the Net Sales, on a product-by-product, country-by-country basis, while and to the extent that the Compound or the Product is Covered by any IPI Patent (the “Royalty”, and together with the Initial Payment and the Milestone Payment, collectively, the “Consideration”), provided, however, that the Royalty shall be automatically, without action of any Party, reduced to 2% of the Net Sales if the Compound and/or the Product are not Covered by any IPI Patent or are otherwise Covered by a Joint Patent under Section 8.1(c)."