agreed .. imo IP is very clear in what was noted ..

an initial payment .. that is not defined ..
plus be eligible for additional payments based on certain milestones .. totaling
over $24 million
and receive a 6 percent royalty (net sales) based on successful marketing

the $24 million is laid out in the exhibit page of the 8K (page 21 & page 22)

(a) Initial Payment. ALFASIGMA shall pay to IPI a one-time, non-refundable, non-creditable initial payment in the amount set forth on Exhibit I (“Initial Payment”) on the Effective Date;

(b) Milestone Payments. ALFASIGMA shall pay to IPI the following one-time, non-refundable, non-creditable milestone payments (each, a “Milestone Payment”), following the occurrence of certain milestone events as set forth below (each, a “Milestone Event”).

(i) Development Milestones

For the UP/UPS Indication:

(1) US $ 1 million , upon Commencement of the First Phase III Clinical Trial; and
(2) US $ 1 million , upon the first filing of the Marketing Approval application to the US Regulatory Authority (“FDA”) or the EU Regulatory Authority (“EMA”), as applicable, without any duplication;


(ii) Regulatory Milestones

For the UP/UPS Indication:

(1) US $ 3 million , upon obtainment of the Marketing Approval from FDA; and
(2) US $ 1 million , upon obtainment of the Marketing Approval from EMA.

CONFIDENTIAL

(iii) Sales Milestones

Milestone upon achievement of the following aggregate Net Sales

Payment

First achievement of US$ 100 million
US $ 3 million

First achievement of US$ 200 million
US $ 6 million

First achievement of US$ 300 million
US $ 9 million


ALFASIGMA shall notify IPI in writing of the occurrence of any applicable Milestone Event (each, a “Sales Milestone Notice”) within ten (10) Business Days after such occurrence.


http://www.ipharminc.com/financials

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The Company will receive from Alfasigma an initial payment, plus be eligible for additional payments based on certain milestones, totaling over $24 million, and receive a 6 percent royalty (net sales) based on the successful marketing of Brilacidin for UP/UPS. The agreement also includes a Right of First Refusal for Brilacidin for the treatment of more extensive forms of Inflammatory Bowel Disease (IBD), such as Ulcerative Colitis and Crohn’s Disease, and a Right of First Negotiation for Brilacidin in other Gastrointestinal indications.

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http://www.ipharminc.com/press-release

and for those who didn't see Mo's post .. the intro to the email yesterday ..

Quote:

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Good morning!

I am very excited to start the week by informing our shareholders that we have successfully executed a new partnership with Alfasigma S.p.A, a global pharmaceutical company employing over 3,000 people and generating annual revenue in excess of €1 billion, for the purpose of developing Brilacidin for UP/UPS.

This is a major milestone for us and lends a tremendous amount of validation to the platform potential of Brilacidin as the flagship compound in a new class of drugs, defensin-mimetics. The partnership provides us access to initial and milestone-based capital, and also frees up valuable resources to aggressively develop oral Brilacidin for the much larger Ulcerative Colitis market, as well as advance oral rinse Brilacidin in Oral Mucositis.

We believe that we are well positioned as drug development leaders in both of these markets and are thrilled with the Alfasigma partnership as it will help us build shareholder value and fulfill our goals of penetrating multibillion dollar markets, bringing needed treatments to patients.

Please take a moment to read the full press release below.

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and my original post yesterday

https://investorshangout.com/post/view?id=5489219

4kids

Quote:

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That's not how the 8k reads...

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