Ann: Release of Scheme Booklet , page-3

"1. LANI ROW split 50:50 with DS. Then later in risks section it says they might not agree on 50:50. I assume this could involve the issue of who owns the BARDA money. Being a glass half empty kinda guy, I'm assuming worst case scenario of 50:50 until proven wrong."


IMO, the worst would be that DS demands higher (e.g. 20%) royalty rate from the Lani ROW, in which case Biota has to give higher (e.g.10%) royalty to DS than 4-6%. However, as PC mentioned in the investor briefings in 2011, the industry standard (4-6% Biota receives from DS) will be applied if going to the court. If DS did not share the cost of applying to BARDA for the contract with Biota, it is reasonable for Biota to get larger piece of benefit of Lani ROW.



Just my thoughts.