col69....you are talking about whole different quantum of...

col69....you are talking about whole different quantum of royalties. Surprisingly this information is not that easy to find, but I managed to dig up a link to the original purchase agreement. Basically MSB pays a tiered rate to Osiris, which averages out at 6% for the first $750m of sales and rises to 10%thereafter. Not exactly onerous rates  

https://www.sec.gov/Archives/edgar/data/1345099/000095012315009868/filename11.htmExhibit 10.7CONFIDENTIALPURCHASE AGREEMENTby and betweenMESOBLAST INTERNATIONAL SÀRL(“MSB”)andOSIRIS THERAPEUTICS, INC.(“OTI”)DATED AS OF OCTOBER 10, 2013EXHIBIT 3.2EARNOUTIn addition to the amounts payable under Section 3.1, until the earlier of (x) ten (10) years after the first commercial sale of an Earnout Product in any country and (y) the first commercial sale of any competing product containing any ceMSC in any country by a Person other than MSB, its Affiliates or a Person authorized by MSB or its Affiliates whether pursuant to a sale, transfer, assignment or license of any Product (the “Earnout Period”), MSB shall pay to OTI the following payments in accordance with Section 3.2 (each such payment, an “Earnout”)vi) for the portion of the accrued Annual Net Sales less than or equal to $250,000,000, MSB shall pay to OTI an amount in cash equal to four percent (4%) of such portion of the accrued Annual Net Sales;(vii) for the portion of the accrued Annual Net Sales greater than $250,000,000 and less than or equal to $500,000,000, MSB shall pay to OTI an amount in cash equal to six percent (6%) of such portion of the accrued Annual Net Sales;(viii) for the portion of the accrued Annual Net Sales greater than $500,000,000 and less than or equal to $750,000,000, MSB shall pay to OTI an amount in cash equal to eight percent (8%) of such portion of the accrued Annual Net Sales; and(ix) for the portion of the accrued Annual Net Sales greater than $750,000,000, MSB shall pay to OTI an amount in cash equal to ten percent (10%) of such portion of the accrued Annual Net Sales.