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clock Created with Sketch. 25/05/24
14:03
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Originally posted by Melody432:
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Read the Stedical (Permeaderm) contract again. Everything in the contract indicates Stedical gets 50% of the sales revenue, no 50% guaranteed profit for Avita mentioned anywhere. Which means if Avita manages to sell the 3.1M of product shareholders already bought for the @6M David Tha'Tool mentioned, Stedical already got it's 50% of future (one can only hope) sales revenue. Meanwhile Avita is responsible for all distribution, marketing and sales cost involved in those sales. Your profit margin on Permeaderm won't be anywhere near 50% until Permeaderm is well established in most of Avita's accounts. Avita is also required by contract to purchase a minimum of 20% more product each year for the first 3 years. Regardless of what was sold. That's 3.72M in early 2024 and 4.464M in 2025. After that it can't go below 4.464M for the last 2 years of the contract. If practitioners prefer what they are currently using over switching to Permeaderm it could be a money loser for shareholders. Seems Stedical wrote the contract and JC simply signed it. Wow.
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in relation to the min purchase it also says that if not satisfied, the contract may be terminated - so I guess if it doesn’t work they will be able to walk away from it?
(20min delay)