hardoak, you misunderstand the agreement with Lilly.
From the 9 Dec 2010 announcement: "Upon FDA approval, Lilly received exclusive worldwide rights to commercialize Axiron. In exchange for these rights, Acrux receives an upfront payment of $50 million plus $3 million on the transfer of manufacturing assets. Acrux is further eligible for $87 million upon the issuance of marketing authorization by the FDA and up to $195 million in potential commercialization milestones, as well as royalty payments on future global sales if Axiron is successfully commercialized. (All financial terms are denominated in U.S. dollars)."
Thus the $195 mil is additional one-off payments when/if certain milestones are met. The Royalty payments are in addition to those and are not capped.
ACR Price at posting:
$3.72 Sentiment: Buy Disclosure: Held
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