Two of the pivotal deals mentioned in my post had a contingent payment component (a Contingent Value Right, or CRV).
In the Novartis acquisition of Chinook, there were two Phase 3 assets at play, being two indications of the same drug. Of the headline US $3.5bn paid by Novartis, US$3.2bn was in cash with a further US$0.3 bn contingent on FDA approval in the two indications, split equally.
Astra Zeneca’s acquisition of Amolyt Pharma also involved a Phase 3 asset. Of the US$1.05m agreed on, AZ paid US$800m upfront with a further US$250m contingent on “a specific regulatory milestone”, likely to have been FDA approval.
NEU Price at posting:
$12.20 Sentiment: Hold Disclosure: Held
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