Post by myocat on Feb 24, 2021 16:26:48 GMT -5
The Q&A mostly focused on Tyvaso, and .......
Quote from UTHR CC
Operator
Our next question comes from the line of Eun Yang with Jefferies. Please go ahead, your line is open.
Eun Yang
Thank you. Questions on Tyvaso DPI. So once it's approved, you owe double-digit percentage of royalty to MannKind. Are there any regulatory or sales-related milestones? And with that, do you expect the gross margin to kind of settle around mid to high 80s? Thank you.
Martine Rothblatt
Okay. Thank you, Eun so much for the question. That sounds to me like pretty much of a financial question. So I'm going to ask our CFO James Edgemond to please handle that one.
James Edgemond
Yes. Thank you, Martine and good morning Eun. You're right, we do owe MannKind royalties related to patients that use the DPI going forward. And as you've probably recognized and noted in the financial statements, we have historically made milestone payment and we achieved these milestones under our agreement with MannKind.
Going forward, there are limited milestones with respect to pursuing other indications. So our main financial obligation as you kind of referred to is fully around our royalty obligation for new patients going to DPI. And as for kind of your question around gross margin, you're getting very specific in terms of what it would be acting overall, because we don't necessarily anticipate breaking out Tyvaso or DPI versus the current nebulizer.
So in your modeling, I think if you take the royalty obligations that we owe MannKind, within your model, you're going to come out to something based upon how you're splitting the revenue. But we don't anticipate doing that on a going forward basis. So thanks for your question and Martine back to you.
Quote from UTHR CC
Operator
Our next question comes from the line of Eun Yang with Jefferies. Please go ahead, your line is open.
Eun Yang
Thank you. Questions on Tyvaso DPI. So once it's approved, you owe double-digit percentage of royalty to MannKind. Are there any regulatory or sales-related milestones? And with that, do you expect the gross margin to kind of settle around mid to high 80s? Thank you.
Martine Rothblatt
Okay. Thank you, Eun so much for the question. That sounds to me like pretty much of a financial question. So I'm going to ask our CFO James Edgemond to please handle that one.
James Edgemond
Yes. Thank you, Martine and good morning Eun. You're right, we do owe MannKind royalties related to patients that use the DPI going forward. And as you've probably recognized and noted in the financial statements, we have historically made milestone payment and we achieved these milestones under our agreement with MannKind.
Going forward, there are limited milestones with respect to pursuing other indications. So our main financial obligation as you kind of referred to is fully around our royalty obligation for new patients going to DPI. And as for kind of your question around gross margin, you're getting very specific in terms of what it would be acting overall, because we don't necessarily anticipate breaking out Tyvaso or DPI versus the current nebulizer.
So in your modeling, I think if you take the royalty obligations that we owe MannKind, within your model, you're going to come out to something based upon how you're splitting the revenue. But we don't anticipate doing that on a going forward basis. So thanks for your question and Martine back to you.
