Rande,
Would be interested in your take on FLMLY:
Proteomics is becoming hot WITHIN the biotech sector. Proteomics is the interaction, regulation, and
modification of proteins.
Some FLMLY info:
thelion.com
flamel.com
From RB:
According to Flamel management, Basilin royalties would be paid Flamel in addition to the potential $42 million in payments described in the press release on the Novo Nordisk agreement. The initial $5 millon payment was simply an up-front licensing fee and the additional $37 million is designated for potential milestone payments on work leading up to a commercial product. In addition, Novo Nordisk will fund the clinical trials and product development for Basilin, allowing Flamel to either conserve cash by decreasing its direct research spending or to focus that spending on other products. Royalties on future Basilin product sales, if the product were successful, would be additional to the $37 Million in milestone payments.
The information given above was obtained directly from Flamel management via telephone when I sought clarification on the Novo Nordisk agreement shortly after it was made public in the Dec 8, 1999 press release. Like you, I also found the wording of press release quite ambiguous with regard to potential royalty payments.
It seems probable that this agreement on Basulin constitutes an important, perhaps critical, turning point for Flamel, since it provides both significant additional recognition of Flamel's technical capabilities and timely financial support. And these important benefits came in addition to the agreement clearly having the potential to be quite profitable for Flamel in the future.
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Flamel announced the commencement of their Basulin Manchester clinical trials back in October. That announcement revealed that the trials would be finished by end of year. The NovoNordisk announcement was made in early December, in which Flamel would give exclusive distribution rights to NOVO for basulin in return for upfront payments and royalties
Fred |
