Robert,
I've heard speculation on the royalty rate in Europe (see below, Larry Liebman's posting here about a year and a half ago) that would put AGPH's share in the mid-teens, since they split with JT. I have no idea what the right number is, though.
My understanding on the Roche deal is there is a rate for Viracept (say 28% for the sake of argument), a rate for Roche PIs (say 24% for the sake of argument), and AGPH receives the greater of the two. So, if both sell $100M, AGPH and JT would split the $28M due from Viracept sales, not the $24M due from Invirase and Fortovase. I've posted this before, and haven't received any independent confirmation, but I believe this to be correct.
Peter
To: Tom DuBois (219 )
From: Larry Liebman Thursday, Jan 23 1997 8:49PM EST
Reply #220 of 2866
I keep thinking about the 13 million shares out and the potential
e.p.s....Today's "BioCentury Extra", talked about the Roche/European
deal...While I knew that AGPT/JT would potentially split $40 million as
an upfront payment, what I didn't know was that analysts believe they
will receive royalties estimated at 28%-30%...If this is accurate...With
North America as their exclusive Viracept domain, and royalties of some
15% from Europe....What is the potential upside to this company's
valuation?...I can see why the C.E.O. has been the proverbial "happy
camper"... |
