Replies to post #196477 on Biotech Values

[DewDiligence]

ARNA +12%/AH on schizophrenia collaboration with B-I:

http://finance.yahoo.com/news/boehringer-ingelheim-arena-pharmaceuticals-collaborate-210500038.html

Under the terms of the agreement, Arena is eligible to receive payments up to $262 million in success milestones in case of full commercial success of multiple drug products, including an upfront payment and research funding.

In addition, Arena is eligible to receive tiered royalties on future sales of products that arise from the collaboration. Further details of the agreement were not disclosed.

Since the up-front amount isn’t disclosed, it’s presumably pretty small.