RE: The Burning Question........30/70.....50/50
Why Buy Transition Therapeutics to achieve your decided upon exposure to kickazz Alzheimers Drug AZD-103 ........why not buy Elan instead.
Simple answer is that Dr. Cruz essentially got the upper hand with this deal and Elan is paying for everything. The milestone payments were calculated by Elan and Transition to be sufficient to cover Transitions 30% share of the WWCA Clinical Trials and FDA Hurdles etc. through to marketing.
Then after Phasell's but before the Phaselll Trial begins Transition gets to study the Phasell Data and decide if they want to increase their stake up to 50/50. They also have the option to change the 30/70 Participation Collaberation Agreement to a Royalty Based Licencing Agreement if they want. Transition clearly has the ability to increase or decrease their level of participation and risk exposure based on the analysis of the data from begining to end of Phasell.
Simple decision really.......Transition gets the nod based on the risk exposure agility acquired in black and white and Elan pays for it all.