ghmm- Here are a couple of perspectives on an answer to one of the questions you posted. Thanks to ariadough for providing to me the Merrill Lynch report that is excerpted below.
Here are the economics for the CAR-T program collaboration with CELG, from the most recent BLUE corporate presentation (available on the website).
Financial highlights:
•$75M upfront payment
•bluebird right to 50/50 co-develop, co-promote and profit share in the US
•Up to $225M per product in potential option fees/milestones, plus royalties
Here are the economics/terms for the CAR-T program collaboration with CELG from Merrill Lynch (Rachel McMinn and coworkers) from their July 15 2013 report in which they initiated BLUE with a buy and a price target of $42.
Terms of the deal:
- CELG paid BLUE a $75M upfront license fee
- The initial collaboration is for three years, with a two year extension
- Future payments to BLUE include: research fees, product license fees,
extension research fees, manufacturing fees, milestone based payments,
mid-single-digit to mid-teens royalties on future sales
- CELG has the option, on a product by product basis, to license up to a
specified period following completion of a Phase 1 study. However, CELG
has an opt-in right through completion of a pivotal study. The maximum
license and milestone fees total $225M per product
- BLUE has the option to co-promote and have a profit sharing agreement in
the US if it shares equally in the US development costs
- If BLUE has a change of control during these five years, CELG has the right
to terminate its collaboration and obtain exclusive rights to all products
identified under the collaboration. The license fee for these products would
be determined under a binding arbitration process. The acquirer would be not
entitled to royalties on future net sales of products or any co-promote
covered under the call option |
