Biotech Values

[exwannabe]

Re: CRXX royalty

Well, call me blind. I looked for this several months ago and could not find it. From deep in the merger papers:

"If Exalgo is approved by the FDA, Neuromed will receive an additional milestone payment of $30.0 million which could potentially increase up to $40.0 million, and tiered royalties on Mallinckrodt’s sales of Exalgo ranging from a mid to high-single digit percentage of net sales. Mallinckrodt will continue to pay these royalties on net sales for as long as it is selling Exalgo although the royalty rate will be reduced upon the earlier to occur of generic competition or June 11, 2024. Neuromed also entered into a development and transition services agreement with Mallinckrodt, pursuant to which Neuromed will perform certain clinical development and regulatory activities through the date of FDA approval of Exalgo. These activities are at Mallinckrodt’s cost and expense, capped at $16.0 million. "

So it IS tiered, and I assume "from a mid to high-single" means that is a low and it goes up from there.

Thanks also, Jesse

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001193125-09-212073.txt&FilePath=\2009\10\22\&CoName=COMBINATORX%2C+INC&FormType=424B3&RcvdDate=10%2F22%2F2009&pdf=