Well, it turns out that HLS IR is very user friendly. The below is Dave's reply to my email questions. I will volunteer my time to converse further with Dave if anyone on this board has any additional questions. I'll arrange a call with him. Yee-Haw!
Hi ,
Thank you for taking time to email us with your questions. There is no public filing of the agreement as the terms and conditions are confidential for competitive reasons, but I can shed some additional light on the announcement.
There are two ways that Pfizer make money on the agreement. One, they are paid an "activity fee", which is essentially paying them for what they are doing - meeting doctors, promoting the product, etc. Generally, a rep will be detailing several products at once; Vascepa will be the primary detailed product, so we pay for that portion of the rep's time-and-effort. Second, they are paid an incentive fee, which is based on sales volumes and designed to drive outperformance.
In terms of why we believe this is a good opportunity for HLS:
• Validation of Vascepa franchise from a well-respected partner with a strong reputation and commitment to the CV space, and with well-established relationships with practitioners
• Great benefit in terms of ramp-up access to primary care physicians due to Pfizer’s existing material presence/equity/knowledge in healthcare industry, and CV in particular
• Lowers execution risk: opportunity to increase awareness faster and accelerate up the adoption curve
• Lowers financial risk: cost effective structure enhances near-term cash flows and is designed to drive incremental performance relative to our base case
• Leverages strengths of both companies: HLS’s inhouse specialty CV sales team combined with Pfizer's national PCP sales team
• Pfizer has a history of strong partnerships of this type
• Our Peak-year sales and margin targets remain in place with upside potential coming from the potential mix of base + performance drivers
If you'd like to discuss the announcement in any further detail, please feel welcome to give me a call and I'd be happy to chat with you.
Regards,
Dave
