Replies to post #232011 on Avid Bioservices Inc (CDMO)

[Couch]

Gee I wonder if SK has discussed with AZN what milestone payments might look like should Phase 1 results be positive and Phase II trials commence. Notice the lack of question mark.

[masshysteria]

tarvacin - the examples you pasted just help drive the conclusion that Astra-peregrine agreement is not following any of the previous models and details remain to be seen.

Astra's PRs have been very clear on the four previous deals.

The Astra-Peregrine PR is purposely lacking any detail. They don't want anyone to know.

The last take away message or conclusion for me would be that Peregrine is paying. It sounds to me like there is a very large contingency that materializes if this works.

And if it works, Astra is not going to lose this opportunity by avoiding a few 10's of millions of dollars, most of which will be spent only after showing signal at phase I/Ib. Market size by 2018/19 is in the $20B-$30B range and will be transformative to any entity in the top 3 in sale of products.

I don't think Peregrine's pockets are being abused for this partnership.

Best,

MH

[peregr]

Good point but let's take it one step further. The main difference is that this is a non-exclusive agreement. Astra (or Medimmune) will supply the durvalumab, then if consistent with the Mirati agreement, PPHM would negotiate a commercial license agreement. Exclusive would give more upfront payment but more collars on the licensing.

But, it would be nice to know from management the extent of the required dilution. Market could never absorb 200M shares on its own.

[JJ1223]

Quote:
Astra is paying and probably with milestones

That's not how the PR read.

Read the last 4 AZN cancer deals.
Peregrine Pharmaceuticals, Inc. (PPHM)

Under the terms of the agreement, the initial trial will be conducted by Peregrine.

Perhaps you missed the term "exclusive", which they had to be.