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Biotech / Medical : NNVC - NanoViricides, Inc.
NNVC 2.010+21.1%9:30 AM EST
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To: RoadyHD who wrote (12769)5/22/2020 8:22:11 PM
From: HardToFind  Read Replies (2) of 12871
 
This is how I think this goes down:
  1. NNVC now has the cash and has the privilege to fund TheraCour's development of a Coronavirus drug, with a 30% markup for Diwan.
  2. For this NNVC gets basically...well...first right of refusal to pay to license the drug that its money was spent to develop.
  3. Diwan will not license the drug to NNVC until NNVC's money has fully paid to de-risk the drug, and thereby increase the drug's value.
  4. Diwan will pay NNVC's money for a valuation of the drug, most likely not informing the valuer than the buyer paid for all development (plus a 30% markup).
  5. Then there will be milestone payments and more Class-A shares, so that NNVC can again pay Diwan for the development.
  6. Then the drug will be taken into clinical trials on NNVC's dime.
  7. If the drug is approved (with a milestone payment to Diwan probably for just submitting an NDA), NNVC will then go seriously cash flow negative to pay to expand facilities and both NNVC's and TheraCour's staff.
  8. Diwan will receive a 30% markup for production, along with a 15% royalty on net revenues. (Diwan contends this royalty is on gross profits, but that's not what the prototype licensing agreement says...and there's a big difference.)
  9. So essentially, Diwan stays cash flow positive and risk-free, while NNVC shareholders stay cash flow negative and reward-free until this becomes a huge blockbuster and then NNVC shareholders might get as much as 50% of the income, presuming this drug is cheap enough to produce (with a 30% markup) that it is highly profitable.
Let me know if I've got anything wrong here...
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