Re new royalty rate in event of additional enoxaparin generic(s).
>>Quote (by acgood):
I thought the term "one-time increase" was used once during the CFO remarks and once in the q&a.
DD: That was in reply to a question asking if the royalty rate could go down, not whether it could go up. However, as noted in my previous post in this thread, I think this distinction is without relevance.
Quote (by acgood:
Also, I mean tiered as in increasing royalty rate due based on increasing sales of the drug. I.e. if the tiers used to be 8-9-10-11-12%, then now would be 10-11-12-13-14% at certain thresholds.
DD: There are no such tiers; the new royalty rate (which would pertain only if a second FDA-approved generic entered the market) is a flat low-double-digit rate.<<
This is CW from the SA transcript:
"There’s a one-time change that was in – that was contractually agreed to. If we had been a single generic for a year – in other words, we have been able to enjoy no competition for a year. The tiered royalty rates that we have which are tiered, so we originally said they go from high single digits to low double digits based upon sales (inaudible) that whole package moves up about 20% to 25%, which puts all of the royalties in the future into low double digits."
I parse this as acgood does. Since it's a one time change, the tiers are based on sales, not time or anything else, so there is no flat rate. CW is clear on this.
Regards, RockRat
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