Replies to post #45948 on Cytodyn Inc (CYDY)

[finesand]

Lawman, 50% Royalty on Sales is very specific.

I didn't expect CEO to suddenly being capable to speak in a very professional manner.

However, he confirmed the signed non-binding agreement
and they have 6 more weeks to close it.
(Listen to the recording)

That alone is a very strong change of events IMHO.

- The cash to launch sales is no more required
- They are no more going alone
- They managed to get a top market 50% royalty on sales deal
- The royalty itself strongly hints that is must be a bigger pharma.
- In just 6 weeks their potential partner needs to close

+++

Recording, edited notes (started from z_smith) and analysis,
later the autogenerated transcript should be available by youtube.
(https://finesand.wordpress.com/2019/09/12/cytodyn-cydy-50-royalties-on-sales/)

Remarks regarding 50% Royalty on Sales

When we analyzed KTOV’s deal back in 2019-01-05, we have researched the overall market average royalty/licensing deals.
(https://finesand.wordpress.com/2018/12/15/kitov-pharmaceuticals-ktov-the-last-mile-of-a-long-journey/comment-page-1/#comment-252)

See: Pharmaceutical royalties in licensing deals: No place for the 25 per cent rule of thumb
(https://link.springer.com/article/10.1057%2Fjcb.2009.13)

50% Royalty on Sales is at the very rare top licensing payments given in the industry and implied that the selling party is more than capable of producing and selling at a very high gross profit, otherwise they would not be able to generate any profits for themselves.

It also has to be understood, such deals balance upfront and milestone payments with the actual long term royalty payments. It is either a very high royalty payment as observed here – or a very high upfront/milestone payment. The latter is rather small here, however the $90M agreed upon are significant and sufficient to launch. And that is all what matters.



+++

[PNW_Ironman]

Agree with most all of what you said here, but to be honest, they did hire a guy that was supposedly very accomplished and an expert at taking a biotech through the development and FDA and acquisition process...Tony C....and look how that turned out. What the heck happened there? Was he just put there by BP to sabotage CYDY from within? Why did he seem to stop all progress, and why did he leave? All a mystery.....
Not sure what the answer is, but after the debacle with RP, (I assume it will turn out that it really was a debacle), I’m not sure anyone can be trusted to come in and have the integrity to be trusted to take this to the finish line better than NP...even with all the flaws.
Still a lot of questions to be answered for sure.

[Grip it and Sip It]

Excellent post! Definitely summed it up succinctly!

Grip

[SammieGo]

Lawman, Re:45948. Another great post by you. The sound quality and presentation were bad enough that I only half-listened and did some of my day job. With good company performance, I assume we'll get NP's history lesson over and over, so maybe it will improve with time. I think he's practiced it many times in his head, which is way different than practicing out loud in your car or in a warm-up room, etc. Recognize your weaknesses so you can strengthen them.

In contrast, as you typed, Dr. Patterson nailed it: tons of passion and excitement without any fumbling/stumbling.

Having typed all this, I think we need to 'Dance with who brung you'. The drug might be on the shelf unused and untested without our frog/prince, warts and all.