Covi-Pantel . NZ Trader Release, page-1300

Hi All,
In the past there has been talk about what Pharmaust could expect to receive following a canine licensing deal with a major. Below is a recent agreement with another Oz small cap. In this case they are paying the owner of the drug, hence the payable costs after commencing Phase 1 and 2 etc.

Add to this an upfront fee, normally reflecting costs associated with development to get this far. [Apprpx 20 Million +] and an ongoing royalty as described by RA in the recent Q & A. [15 Million per annum]

Dosing of fifth patient in Phase I Development US$0.35m
Dosing of first patient in Phase II Development US$0.75m
Dosing of the first patient in Phase III Development US$2m
Receipt of the first Orphan Drug Designation Regulatory US$1m
Marketing approval in the United States Regulatory US$6m
Marketing approval in Europe Regulatory US$6m
Marketing approval in each of the first five jurisdictions other than the United States and Europe Regulatory US$1m (US$5m total)
Upon net sales of US$250m in a year Commercial US$18.75m
Upon net sales of US$500m in a year Commercial US$35.5m

Hence the the advantage of getting a Canine Treatment up first, this would allow Pharmaust to spend up and accelerate the Human applications. I know there are probably other avenues available, but this is the closest one I can find to our situation.

Happy to see other / conflicting ideas, I can be swayed by a more informed view.



Pete