(Total Views: 584)
Posted On: 05/08/2017 7:09:18 PM
Post# of 72446
350 patient phase 3 started in Nov 2015 so they are probably fairly far along.
20M upfront + 43M milestones to approval + $230M in sales milestones + tiered double digit royalties.
Any idea what size market this deal is based on Boo? 72 million procedures a year is all I see regarding the commercial opportunity on the company website. It seems like they're giving up a lot considering they're halfway through phase 3 if it's not a sub-billion dollar market.
Also, this appears to be a reformulation of an anesthetic discovered in 1957. A time-released gel if I understand correctly so perhaps the market is for the delivery system/formulation and is worth less than a novel drug.
So if we can put a pin on that market opportunity it will put things in better perspective. If the TAM is $400M/year this is a pretty nice deal. If it's $2B/year it may not be so hot.
20M upfront + 43M milestones to approval + $230M in sales milestones + tiered double digit royalties.
Any idea what size market this deal is based on Boo? 72 million procedures a year is all I see regarding the commercial opportunity on the company website. It seems like they're giving up a lot considering they're halfway through phase 3 if it's not a sub-billion dollar market.
Also, this appears to be a reformulation of an anesthetic discovered in 1957. A time-released gel if I understand correctly so perhaps the market is for the delivery system/formulation and is worth less than a novel drug.
So if we can put a pin on that market opportunity it will put things in better perspective. If the TAM is $400M/year this is a pretty nice deal. If it's $2B/year it may not be so hot.
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All my posts are my own personal opinion and speculation. They should not be used as the basis for any investment decision. No, I am not Scottsmith.
