True, Eli Lilly's profit margins would be lower compared to if they owned the rights in its entirety.
But honestly... this is how Big Pharma operates now
They don't want to spend billions of dollars on R&D to find the next breakthrough... they rather the small blue sky companies due all the heavy lifting... and then they swoop in and grab marketing rights when they know it actually works.
In a way its a mutually beneficial agreement.... big listed pharmacuetical companies become less volatile with their spending... and the small cap companies get a chance to treble their market cap in 1 day.
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