My question to the board regarding value was viewed 124 times, received 1 thumbs up, and less than a handful of replies, the majority already posted on this forum. Looks like we have a hell of a lot of observers with nobody willing to voice an opinion (Makes me wonder if that is a good reason the country is in the condition it is today).
As to value, all seem to recognize that the IPIX pipeline is HEAVY with value but that currently it will be hard for any BP to pay the full value for any platform at this time as he could only get pennies on the dollar.
That leads me to believe Leo will follow exactly what he has been preaching, partnering out each indication (and possibly a whole platform), with not so extravagant upfront monies but hefty milestone payments and royalties. I have no problem with this arrangement, I just want to make sure BP doesn't get all the gravy and we get scraps. I see no total sale of any indication or platform.
I have one idea how we could be sure of reaping our rewards should our drugs become the massive revenue generators many envision and that is for the royalty payments to be tiered just as the milestones will be tiered and this could be by revenue generated per year, total revenue generated to date, market share/market share increase, # of combinatory successes, etc. or any combo of the above criteria.
Example: P for Psoriasis If we beat Otezla hands down, then it is pretty clear Prurisol will generate greater than $2B/yr with a minimum of $4B more likely. So have BP partner pay us now with upfront payment, milestone payments, and royalty payments over the remaining life of the patent (say 15 years) based on $60B lifetime revenues. Now if Prurisol goes way over these base figures, then once we hit certain criteria (or $60B in total sales) then the royalty percentage of sales rises say another 20% since anything in excess of $60B is pure gravy to the BP. They could have a review at the 8 yr mark and redo the royalty rates based on total sales to date compared to the $4B/yr expectation of the original contract. So this way both sides are protected should Prurisol turn out to be less than expected (BP makes out) or greater than expected (IPIX makes out).
I would also throw into the negotiations immediately that whoever we choose as a partner in our first deal for an indication of a particular platform will have the right of last refusal in all future indications for that platform. This should get the initial bids up to steam quickly.
Something to think about. Hope to get some feedback but only expecting the same 5 or 6 who make this board functional to reply.
As to value, all seem to recognize that the IPIX pipeline is HEAVY with value but that currently it will be hard for any BP to pay the full value for any platform at this time as he could only get pennies on the dollar.
That leads me to believe Leo will follow exactly what he has been preaching, partnering out each indication (and possibly a whole platform), with not so extravagant upfront monies but hefty milestone payments and royalties. I have no problem with this arrangement, I just want to make sure BP doesn't get all the gravy and we get scraps. I see no total sale of any indication or platform.
I have one idea how we could be sure of reaping our rewards should our drugs become the massive revenue generators many envision and that is for the royalty payments to be tiered just as the milestones will be tiered and this could be by revenue generated per year, total revenue generated to date, market share/market share increase, # of combinatory successes, etc. or any combo of the above criteria.
Example: P for Psoriasis If we beat Otezla hands down, then it is pretty clear Prurisol will generate greater than $2B/yr with a minimum of $4B more likely. So have BP partner pay us now with upfront payment, milestone payments, and royalty payments over the remaining life of the patent (say 15 years) based on $60B lifetime revenues. Now if Prurisol goes way over these base figures, then once we hit certain criteria (or $60B in total sales) then the royalty percentage of sales rises say another 20% since anything in excess of $60B is pure gravy to the BP. They could have a review at the 8 yr mark and redo the royalty rates based on total sales to date compared to the $4B/yr expectation of the original contract. So this way both sides are protected should Prurisol turn out to be less than expected (BP makes out) or greater than expected (IPIX makes out).
I would also throw into the negotiations immediately that whoever we choose as a partner in our first deal for an indication of a particular platform will have the right of last refusal in all future indications for that platform. This should get the initial bids up to steam quickly.
Something to think about. Hope to get some feedback but only expecting the same 5 or 6 who make this board functional to reply.
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