This 50/50 ROW stuff is an assumption that probably many analysts and people in the media and importantly, investors, might make, which corrupts their interpretation of the value of BTA.
Maybe better if people understand that in Japan, Biota also share with DS 50/50 after allowance for manufacturing and specified selling costs.
"Under the co-ownership agreement, Daiichi Sankyo held an option to manufacture and sell laninamivir in Japan, in return for funding an extensive range of Japanese clinical trials. Biota will receive royalties on all sales of Inavir? and may qualify for additional milestone payments".
So if Biota end up getting 4 or 5% royalties (I can't remember what it is) plus milestones from DS, this is what equates to the 50/50 share in Japan.
So under the same arrangement, what's good for the goose is also good for the gander - if Biota choose to manufacture and sell LANI for ROW, Biota will end up paying DS a similar small royalty % plus milestones.
To put it in plain english, Biota will get a far bigger net share out of ROW than DS.
BTW, there is a milestone (annual?) due from DS towards the end of the year - what's the estimate? Presumable it will be well into the double digits in millions of dollars.
BTA Price at posting:
$1.29 Sentiment: Buy Disclosure: Held
