Replies to post #78546 on NorthWest Biotherapeutics Inc (NWBO)

[doingmybest]

Hankmanhub, this type of arrangement is not atypical in the pharma industry. The way these work is that contractors tend not to have the capital to invest for large installations when there is no guarantee of filling it and when there may be a large time gap until revenue flows initiate. So, the product owner provides the capital to invest in new brick and mortar or just for equipment, and, the payback comes in the cost of goods since the cost of the new equipment cannot be included as it typically has to be. So, this is actually a very efficient way to build a complex mfg network without having to fund it all, but, rather to share the cost up front and to leverage the expertise of the contract mfgr. Once commercial production commences NWBO will receive their payback.