All figures in pounds.....An earnout is a contractual provision stating that the seller of a business is to obtain additional compensation in the future if the business achieves
certain financial goals, which are usually stated as a percentage of
gross sales or earnings.
With this amount spread over a great number of drugs in the AMCo one would have to think that the full Earn-Out Consideration is currently far beyond the stated amounts.
Accelerated Earn-Out Consideration = 144,000,000 max. divided by 3 = 48,000,000
To reach the max. Accelerated Earn-out Consideration, Actual Gross Contribution would need to be 242,400,000 + 48,000,000 = 290,400,000 for selected drugs agreed upon by both buyer and seller as there are Excluded Product Sales that are considered Commercially Sensitive.
Now to the selection of those drugs which make up the 242,400,000 when DD by both buyer and seller have arrived at a projected yearly Gross Contribution and whether the drugs have generic or planned generic during the past year.
One would think that only the major drugs that Concordia was actually interested in would be on the list and others were just the gravy to top off the transaction.
Anyone that thinks Concordia is going to pay the full 144,000,000 has not been doing their DD on the company.