|
Post by tchalaa on Nov 19, 2014 3:32:00 GMT -5
$90.0 million Milestone Rights Purchase Agreement (the “Milestone Agreement”) with Deerfield Private Design Fund and Horizon Santé FLML SÁRL in 2015
Filing Date: 11/10/2014 Form Type: 10-Q Page 12 Contingencies — In connection with the Facility Agreement, on July 1, 2013 the Company also entered into a Milestone Rights Purchase Agreement (the “Milestone Agreement”) with Deerfield Private Design Fund and Horizon Santé FLML SÁRL (collectively, the “Milestone Purchasers”), pursuant to which the Company sold the Milestone Purchasers certain rights (the “Milestone Rights”) to receive payments of up to $90.0 million upon the occurrence of specified strategic and sales milestones, including the first commercial sale of an AFREZZA product in the United States and the achievement of specified net sales figures (see Note 11 – Facility Agreement).
|
|
|
Post by rak5555 on Nov 19, 2014 9:21:22 GMT -5
$90.0 million Milestone Rights Purchase Agreement (the “Milestone Agreement”) with Deerfield Private Design Fund and Horizon Santé FLML SÁRL in 2015Filing Date: 11/10/2014 Form Type: 10-Q Page 12 Contingencies — In connection with the Facility Agreement, on July 1, 2013 the Company also entered into a Milestone Rights Purchase Agreement (the “Milestone Agreement”) with Deerfield Private Design Fund and Horizon Santé FLML SÁRL (collectively, the “Milestone Purchasers”), pursuant to which the Company sold the Milestone Purchasers certain rights (the “Milestone Rights”) to receive payments of up to $90.0 million upon the occurrence of specified strategic and sales milestones, including the first commercial sale of an AFREZZA product in the United States and the achievement of specified net sales figures (see Note 11 – Facility Agreement). tchalaa - what does this mean? Has MNKD sold the rights to the milestone payments to Deerfield, and if so, what did they get?
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Nov 19, 2014 13:50:58 GMT -5
Means they gotta pay Deerfield money when they sell certain levels of product. Imo this is why their are milestone payments with SNY. It is my belief that all costs associated with producing afrezza, including this are part of the calc that determined the milestones MNKD receives from SNY. They want MNKD to have no issues making product for many many years. (IMO the dollars will also cover insulin purchases and equipment build out)
|
|
|
Post by mnholdem on Nov 19, 2014 16:53:33 GMT -5
The payment schedule to Deerfield is in the agreement filed on 2013. $5M for approval, $10M for partnership and $5M for each sales milestone up to $1.2B I recall.
$M a pop is about 5-7% of what Sanofi pays for milestones.
|
|
|
Post by papihoyos on Nov 20, 2014 7:20:33 GMT -5
Do these milestone payments get applied to the debt?
|
|
|
Post by mnholdem on Nov 20, 2014 18:01:03 GMT -5
The payments don't go into A/P until each milestone is reached. I recall terms for payments are NET-45.
|
|