Most distribution deals I've seen are structured that way. Distributor responsible for distribution, marketing and sales costs, vendor responsible for production and delivery costs, any return costs. Both get paid whatever revenue split agreed by contract out of actual sales.
The Stedical contract guarantees Stedical minimum 5M this year, 6M next year and 7.2 the following 3 years. That means Avita has to sell 10M of Permeaderm this year to capture it's 50% share of revenue, rinse and repeat at escalating levels. All I can say is good luck with that. Regenity similar for next 2 years. Did a little bit better on that, but then Regenity doesn't have an approved product yet. Not even a name for product.
Both have multiple competitor products approved and in use by hospitals and practioners. A hurdle for sales.
Just sayin'.
Ann: AVITA Medical Expands Portfolio with Unique Dermal Matrix, page-27
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