Yes, I've watched the video a few times.
What is there to negotiate? Are you kidding? Don't be naive. Listen to the presentation. What Ed set forth were some possible strategies, in outline of gross dimenstions. Not unlike your summary. In the context of being reiliant on another to develop the market, sell the product, build the product, service the product, finance the product, etc. etc. the only thing that MZEI has limited control over is the amount of royalty (not necessarily price - that too is a point of negotiation). Unless managment has the insight into each of the elements of cost and performance of multiple prospective partners/licensees, they don't have the information to negotiate the best royalty/license for shareholders.
Do you negotiate an up-front royalty payment? Why or why not and how much?
Do you negotiate an annual fixed royalty? Why or why not and how much?
Do you negotiate royalties only based on sales (a foolish concept IMO)? Why or why not? Is any such royalty unit or revenue based or a combination?
Hypothetically, let's say that MZIE licenses the product to JNJ (nobody LOL). While that would be considered a strong partner, the economics of the license and how the "street" views JNJ will have only modest impact on MZEI. MZEI still needs to tell the "street" its story, its fundamentals, etc. One can't rely on your 'partner/licencee' to carry your investment relations freight, unless of course you are acquired by them.
AI
