Original announcement.
GlaxoSmithKline [NYSE: GSK] announced today the launch of the RELENZA® (zanamivir) Inhalation Powder Pandemic Readiness for Employers Program (P.R.E.P.) that enables businesses two options when stockpiling RELENZA in preparation for an influenza pandemic. Under the new plan, businesses will have the option to purchase Relenza now at a discounted rate with free storage or to reserve quantities of Relenza for future purchase at a capped rate with a nominal annual fee.
Interpretation:
Option 1 Purchase plan: Purchasers buy the stuff at a cap rate and GSK will store it for them. (Purpose: guaranteeing supplying buyers with non-expired stock enbaling GSK to roll over stock away from the expiry date trigger).
Option 2 Purchase plan: pay an annual fee for reservation of future purchase at the current cap rate. (Purpose: supplying the buyers with non-expired stock and help businesses with buyer's business cashflow).
These are purchase contracts, not trade exchange type contracts.
As they are purchasing contracts, this constitute a sale.
The buyers is not paying for an option to buy. The buyer has purchased.
Biota gets royalty on sales.
Original announcement.GlaxoSmithKline [NYSE: GSK] announced...
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