Post by
RetailRube on Aug 13, 2014 5:21pm
Partner Deal Example
I just read in my Financial Times (Aug 12, pg 19) that a US biotech company announced a partnership agreement with a big pharma company. I think it is an indication of the type of deal done in the industry. Our upcoming deal for Urocidin may have similar terms.
MannKind company developed an inhaled version of insulin, which the FDA approved in late June for the US. On Aug 11th, Mannkind announced the partnership agreement with Sanofi (a French company). The deal is to "license and develop". Note that the FDA approval came first, then the partnership. I assume that means Sanofi didn't share in clinical trial costs.
Sanofi pays $150m upfront to MannKind plus up to $775m of milestone payments in future. MannKind will do the manufacturing. The two companies will share the "profits" globally. Sanofi gets 65% of the profit and MannKind gets 35%.
Bioniche's deal with Palladin is also a profit-sharing arrangement for Canada/Mexico/South-Africa. Bioniche ships the product to Palladin at no-charge. The profits are then split according to a [redacted] formula.
MannKind was up 17% on the announcement of the partnership. I don't know how much they were up in late June when the FDA decision was announced.
Comment by
RetailRube on Aug 14, 2014 12:42am
Oink! I took you off ignore and all I get in return is sarcasm. I have always shown you utmost respect. Sir. P.S.: They told us in high school health class that if you rate your own posts, you will go blind. I hope you can still read this.
Comment by
SWNE on Aug 14, 2014 8:58am
So sorry Rube, no sarcasm intended. I do have great respect for you!