Only if so stipulated in a contractual agreement with another party involving marketing, sales and possibly operational distribution of product or services within a geographical territory for a stipulated period of time slopak. It might include up-front payments, milestone payments, royalties, options to acquire and a hundred other wrinkles. Last Licence Agreement I executed with a large pharmaco was 42 pages in length, size 8 1/2 X 14 and a 12 font, probably about average . . . .
For example, BIEL could have entered into an agreement with a modest up-front payment and then milestone payments based, say, on change of classification, 510(k) clearance by the FDA here in the USA, another for NHS tariff addition in the UK, etc., etc.
Then, when retail or wholesale sales commence there would be royalty payments, usually a percentage or dollar amount per unit and potentially increases or balloons or both on passing through certain sales volume targets. An earlier agreement would mean that the other party with skin in the game was sharing the risks associated with regulatory clearance and getting to market with BIEL, but BIEL would have had the up-fronts and milestones as another method of financing. The company chose to go it alone with the revolving financing model meaning when successful, and distribution agreement will be more lucrative for BIEL since it would be presenting an approved product ready for retail shelves - less risk for a distribution partner, more revenue sharing for BIEL. Both methods have merits, both will have criticisms, always retroactive, of course. Hope this helps slopak.
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