Were I to guess who is correct, I would go with your insight. : )
I just can't see agreeing to a 40% co-fundd without having a strong sense (spelled clinical proof) of efficacy and safety. I can't see that phase 2A individual testing would provide sufficient data or confidence.
It just seems hard to expect that they have a clear enough pikture to know if they should co-fundd.
...and I would think they might/should have anticipated this current set up.
So I must be wrong, but I can't figure out where it is. : )