Wow! They only paid 175 million euro for the entire rights to intellectual property and rights to Estetrol worldwide (Nexstellis and Donesta mainly). I think what Mayne Pharma is after, is reducing the liabilty of the contract originally signed. I also understand that the fixed and variable component payments run in the double digit % of revenue. Here it is.
"Transaction structure and financial impactsUnder the terms of the agreement, Mayne Pharma will pay up to US$295 million comprising US$8.75 million in cash and 4.95% of Mayne Pharma’s ordinary shares at closing. Mayne Pharma will also pay US$11 million in cash and a further 4.65% of Mayne Pharma’s ordinary shares following FDA approval (based on issued shares at closing), plus contingent payments based on reaching cumulative net sales targets4. The total consideration of US$295 million would be paid if cumulative net sales of E4/DRSP exceed US$2.25 billion. In addition, there is a transfer price comprising fixed and variable component based on a percentage of net sales over the term of the license."
MYX Price at posting:
$4.66 Sentiment: Buy Disclosure: Held
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