Now on to MORE evaluation. Seems like these guys need convincing again and again. Guess they just want to be absolutely sure before they go whole hog. A cautious bunch!
I trust the royalty rate and monetary payments will reflect those.
Any ideas based on past cases of a similar wide ranging deal involving a start up and a major with such a MAJOR drug offering?
My Google:
Gilead Sciences, Inc. discovered Tamiflu in the early 1990s and still holds the patent. Gilead licensed development and marketing rights to Roche in 1996. .... CLAIM: Sales of Tamiflu were over $254 million in 2004 and more than $1 billion in 2005?
Gilead receives a blended royalty on sales of Tamiflu, tiered from 14 to 22 percent based on Roche's annual net sales. Roche has agreed to eliminate the pre-existing contractual cost of goods adjustments from the royalty calculations, retroactive to calendar year 2004 and for all future calculations. As a result of the elimination of the cost of goods adjustment, Roche will begin to pay Gilead at the contractually specified royalty rate based on the level of sales achieved, instead of the prior year's effective royalty rate. Without the cost of goods adjustments, based on actual sales for the first nine months of 2005 and estimated pandemic sales for the fourth quarter, Gilead anticipates receiving a blended royalty for Roche's full year 2005 Tamiflu sales in the range of 18 to 19 percent. Within 15 days after the amendment becomes effective, Roche will pay Gilead $62.5 million to reimburse Gilead for cost of goods adjustments retroactive to 2004 as well as to update the royalties payable to Gilead for the first nine months of 2005 based on current year royalty rates. Finally, Roche has agreed to waive its rights on the $18.2 million that Roche previously paid to Gilead and that Gilead deferred, for the disputed royalty calculations in the period from 2001 through 2003, as outlined in the notice of termination delivered to Roche on June 23, 2005. http://74.125.95.132/search?q=cache:TYRP1d6M5WoJ:www.gilead.com/pr_783456+Gilead+Roche+Tamiflu+licensing+rate+terms&hl=en&ct=clnk&cd=1&gl=ca&client=firefox-a