Antibe Therapeutics Inc(Pre-Merger) ATBPF

Royalties

[Marky1]

Could someone please explain to me about Royalties...Let's say it cost 100$ for ANTIBE to make a bottle of Otenaproxesul....It is sold in China, let's say for 300$...so ANTIBE makes a profit of 200$...so how do Royalties fit into all this? Please explain how it works...

[Layth1990]

what i understand, royalties is like a comission  from total sales, revenues or net profit (depends). in the future nuance will produce and commercialize our drug. if royalties for example is 15% from the total sales, that means if they sold 1B a year, antibe will get 150m. if i'm wrong , feel free to correct me 

[3burtc]

Yes! There market is about 10 billion a year and our drug could get half of that for a whopping 5 billion giving us $750 million annually. Not bad for just 10% of the global pain market.

[bringon10bagger]

WOW, they're sweet royalty amount for just 10% global sales....that just compounds buyout value for any big pharma.....a $4B buyout they can get they can get payback in 5 years from just Nuances royalty.......that just seems $4B is minute for a complete buyout...proves you can never dream big enough with what may happen here.

[Pragmatist]

Royalties normally are based on the sales  of the drug by the licensee.  Antibe receives x% of these revenues from the licensee.  Holdings receives 15 of Antibe's take. Someone previously mentioned that Holdings would also receive 15% of the upfront payment (and other milestones??)  That's not what the license arrangements say in the available documents. But in a way