Well, here is the update, guys:
>>Hello folks,
Well, I finally get to contribute a bit, here is some of the management discussion Andy was refering to;
On July 21, 1997 Targon entered into an agreement with Elan pursuant to
which Targon acquired an exclusive worldwide license for a controlled release
oral morphine pain relief product (the "Oral Morphine Product"), for an up-front
license fee of $7.5 million. CYTOGEN received from Elan $10.0 million in
exchange for a three-year interest bearing note with principal due in full at
the end of year three. Targon received $10.0 million from CYTOGEN in exchange
for a three year interest bearing note with principal due in full at the end of
year three to purchase the Oral Morphine Product and to provide working capital
for product development. Additional payments may be due Elan by Targon in the
future if and as certain milestones are met. As a result of the
6
license agreement, the third quarter of 1997 CYTOGEN's 10-Q Statement of
Operations will reflect the $7.5 million in product acquisition cost.
Sound okay, or are 3d qtr earnings going to be low? again!
Luck to us all, Jeff<<
And here are some questions I have:
Does anyone know about the market potential and competition for an oral controlled release form of morphine? Sounds like the market could be large and CYTO does have great expertise at getting products through the FDA.
Also will someone a little better at finances than I tell me what this means financially? Sounds like next Q CYTO will have a one time charge of 7.5M.
BTW, does anyone understand why Elan is loaning the money to Cytogen and CYTO to Targon, rather than Elan loaning it directly to Targon? Also I believe this drug must go through trials?
Finally, does anyone understand what percentage of the profits (if there are any) from this drug will go to CYTO, if any?
Thanks, guys. Appreciate the help. |
