RE:RE:RE:IR responceThe liscence only kicks in when the final payment is made. No payment / no drug.
Payments are usually triggered by milestones reached and China has it's own set of hudles that need to be cleared before a drug is approved. When we clear one hurdle we receieve another milestone payment, clear another hurdle and we receive another payment and then on final approval yet another payment, usually a balloon payment. Once the drug is being sold we receive royalties on sales which I believe will continue until the drug goes off patent.
Each country has it's own set of guidlines, some less onerous than others, the US FDA probably being the strictest and therefore the longest time to market and the most expensive. So we go after each market seperately and we've now landed China. Tomorrow we may land India or Brazil or Japan or ?. Ultimately we want to do a deal that covers Europe and the US but those may take a bit longer although no doubt we are pursuing them.
Landing a big one like China with a $ 100 Million price tag must be a wake up call to everyone else and so hopefully that was just the first domino to fall.
So we wait and maybe accumulate knowing that a market cap of only $ 220 Mill for a successful Biotech is very cheap, certainly for one that has been derisked by a significant deal like this.
yessim wrote:
Look i have limited knowledge on such things, but if china approves .....why would they give 100 mil. in milstone payments.
If someone can explain why Im wrong please tell me.
my first buy in was X-mas 2017 and averaged up right up to last summer.....selling none along the way. Not trying to sound negative just seemed like a valid thought.
Thx.