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clock Created with Sketch. 08/05/15
20:24
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Originally posted by fatusmaximus
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Hi Abdm,
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Hi fatusmaximus, There are no current arrangements between P&G and Corium that require P&G to pay any royalty fees to Corium...
In June 2005, we entered into a multi-faceted strategic arrangement with P&G, one of the largest consumer products companies in the world. Our relationship includes a worldwide license to P&G for the use of our Corplex technology in products in the general field of consumer products. This field does not include rights in the prescription drug, foot care and wound care fields. P&G paid us fees for the license, and agreed to pay additional future milestone payments for products that we develop for P&G. In addition, we entered into a long term joint development agreement under which we perform numerous research and development activities for P&G based upon agreed-upon statements of work and budgets. We also have a commercial supply agreement in place, under which we are responsible for the production and supply to P&G of four oral care products. Our supply agreement with P&G currently extends through January 2017. The supply agreement can be expanded to include any additional products that move into commercial supply. We believe that we have unique capabilities and know-how related to the manufacture of Corplex-based Crest Whitestrips, which would be difficult for another party to duplicate. We have developed and commercialized four oral care products for P&G sold under the brand name Crest Whitestrips. The four products are Advanced Vivid, Professional Effects, One Hour Express and Flex-Fit. We have developed all of these products under the joint development agreement and are currently supplying each product in an intermediate, not final packaging, stage to P&G. In addition, we have other products in development for the oral care business at P&G as well as certain products in development for other businesses at P&G. In addition to contract research and development and product revenues, from the inception of our collaborations with P&G, we have received a total of $3.2 million in license fees and $2.0 million in milestone payments from P&G. None of our arrangements with P&G require a royalty to be paid to us. LICENSE AGREEMENT
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P&G don't permit for public release any financials specifically relating to the sale of individual product lines within their product brand portfolio's, and this kind of information would only be available to a select few within the organization. The standard royalty fee within the consumer products industry is usually somewhere in between 1% to 5%, however P&G often negotiates towards the higher end of that scale these days as it only seeks to secure exclusivity rights for technologies that it considers to be breakthrough innovation which can be incorporated into its largest new product initiatives.
Last edited by
abdm :
08/05/15
(20min delay)