Biotech Values

[iwfal]

Thanks - still not getting it. Probably the best way to ensure clarity is to write an example:

Does all NVS Net Profit go against NVS's Development costs - or only MNTA's portion of Net Profit. I.e. which of the following:

Assume:

a) NVS total Development Costs were $100M (number for illustration only)

b) MNTA's portion of net profit is 45%

c) NVS net profits every quarter are $50M. (again, for illustration only)

Does:

1) MNTA get its first profit immediately after 2 quarters (100/50)?

2) MNTA doesn't actually receive its first net profit sharing check from NVS until after 4.444 quarters (100/(0.45*50))? (i.e. MNTA picked up ALL of the development costs)