RE:RE:RE:RE:Contract Extension I am willing to entertain other thoughts on the subject.
After a little more consideration last night it would seem there is another plausible explaination for the deal. The original assumption was that it was Nuvo requesting a longer term agreement. What if Horizon wanted the deal?
Specifically what if Horizon wants to control the Pennsaid "brand" by making an offer to control the "world-wide" rights. In that way Horizon can choose which markets they will play in and which markets they will partner in. No buyout of Nuvo required. Horizon will re-market the rights and like a franchise owner will make sure that the brand values are maintained and reinforced through advertising etc.
Obviously if they wanted to ensure they got to the front of the line a carrot they could hold up is a re-opener of the US supply deal; something no other bidder could match in their offers. That is a plausible explaination of why a tiered supply deal makes sense if it was initiated by Horizon.
That does not necessarily rule out a buy-out of Nuvo after the fact; just narrowing of the playing field. Such a deal could be initiated by a company looking for a relatively safe and growing business with little need for cash reinvestment.
Whatever is going to happen should happen fairly quickly. The trigger should be the Phase III results and while the company has never offered a date other than Q1 2016 one must expect the results will be out ahead of the special meeting. Time will tell.