Replies to post #3984 on Seelos Therapeutics Inc (SEEL)

[MasterMerlins]

Yes.. I agree.. I thought this figure would have been more Myself..!

Look at it this way.. $16 M USD ( Abbott Canadian Deal ) + €21 M or $28 M USD ( Sandoz / Novartis Germany Deal )= $44 M USD..

$44 M USD X 9% Upfront = $4 M USD Approx..!

There is something Else that Dimitrios brought up in a previous thread.. At first I looked at it as a possible Negative.. But, now that the Upfront from the 2 Deals is somewhat known it strikes me as a Positive..

He asked what the Regulatory Milestone for the Abbott Laboratories Deal was.. As we all know that Vitaros is already Approved by Health Canada..


"On January 9, 2011, Apricus Biosciences, Inc. (the “Company”) entered into an exclusive license agreement (the “Agreement”) with Abbott Laboratories Limited (“Abbott”), granting Abbott the exclusive rights to market Vitaros® (alprostadil), Company’s treatment for erectile dysfunction (“ED”), in Canada.


Under the terms of agreement, Abbott will commercialize and market Vitaros® in Canada, where the drug was approved by Health Canada in late 2010, with launch anticipated in 2012. Over the lifetime of the deal, Company will receive up to approximately $16 million in up-front, regulatory and sales milestone payments, plus tiered, royalty payments based on Abbott’s sales of the product in Canada. "

http://www.sec.gov/Archives/edgar/data/1017491/000114420412001261/v244989_8k.htm

So.. In my opinion .. Whatever this so-called Canadian Regulatory Milestone is, it will be satisfied as soon as Abbott Laboratories starts selling Vitaros in Canada.. That in itself makes this a Positive, as more cash from the Abbott Laboratories deal should be Expected this YEAR..!

As far as the Regulatory Milestones for the Sandoz Deal and even the Bracco Deal.. EMA Approval should trigger these Milestones..!

Is the Majority of the Cash tied to Sales Milestones..? It probably is.. But just the Fact that we are able to tap into this Possible Cash by means of Sales is way more than we received by the previous Managements deals..!

I do not have a breakdown of how the Sales Milestones would be triggered for Vitaros.. And Honestly I believe that every single deal is different..

What I do have is a breakdown of how the Regulatory Milestones & Sales Milestones are triggered for the Innovus NexAct Deal..
I am 100% sure that it is not the same, but it gives us an Idea of how this Managements structures its deals..

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"2. Milestone and Royalty Payments:


(a) For sales of the Licensed Product directly or as a co-marketer:


(i) Milestone Payments:

To be paid on a Licensed Product by Licensed Product basis and payable within 10 days of achievement:



-$350,000 for dosing of first patient in Phase I clinical trial;


-$750,000 for dosing of first patient in Phase II clinical trial;


-$1,250,000 for dosing of first patient in Phase III clinical trial;


-$2,500,000 for regulatory approval of Licensed Product;


-$1.5 million upon first reaching Net Sales of at least $0-$50 million;

-$3 million upon first reaching Net Sales of at least $50-$200 million;

-$6 million upon first reaching Net Sales of at least $200 million to $500 million; and


-$12 million upon first reaching Net Sales of above $500 million."

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As you can see from this Deal with Innovus.. Sales Milestones are a HUGE Factor.. But as soon as the First Product is Sold.. It Automatically triggers the First Tier of Sales Milestones..!

So.. This is why the Start of Vitaros Sales in Canada is a BIG Catalyst for Apricus..! In my opinion .. Once this happens, it will have triggered the Regulatory Milestone & the First Tier of the Sales Milestones..!

I hope this Helps..!