<< 2. Revenue from Novartis collaboration? No draw from loan facility and related to 2003 clinical expense? And this should be FREE money, IF they hit target with PII? >>
They did!
From 10Q:
…Development expenses incurred during 2003 will be shared equally by the Company and Novartis. Regeneron may fund its share of 2003 development expenses through a loan (the “2003 Loan”) from Novartis, which will bear interest at a rate per annum equal to the LIBOR rate plus 2.5%, compounded quarterly. The 2003 Loan and accrued interest thereon will be forgiven should certain defined pre-clinical and clinical milestones be reached; otherwise, such amounts are payable on July 1, 2004. As of June 30, 2003, the 2003 Loan balance due Novartis, including accrued interest, totaled $5,147….
… Three months ended June 30, 2003 and 2002. Our total revenue increased to $10.5 million for the second quarter of 2003 from $5.6 million for the same period of 2002. Contract research and development revenue increased to $9.8 million for the second quarter of 2003 from $2.7 million for the same period of 2002, as we recognized $7.0 million of revenue related to our IL-1 Trap collaboration with Novartis. We recognize revenue in connection with the collaboration using the percentage of completion method in accordance with Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements (SAB 101). …
… Development expenses incurred during 2003 will be shared equally by Regeneron and Novartis. We may fund our share of 2003 expenses through a loan from Novartis that will be forgiven, together with accrued interest, should certain pre-clinical and clinical milestones be reached and is otherwise payable on July 1, 2004. As of June 30, 2003, we have drawn $5.1 million against this loan facility. In addition, at June 30, 2003, $4.3 million was receivable from Novartis for their share of IL-1 Trap development expenses incurred by Regeneron during the second quarter of 2003… |
