JD, Here's what was in the press release:
"Additionally, Ligand's agreement with Lilly calls for up to $10 million, payable in cash or Ligand Common Stock, at Ligand's option, in potential milestone payments to Lilly, if ONTAK is approved by the FDA, and upon certain other events. Upon certain other events, Lilly could receive an additional $10 million in milestones."
I would read the above as indicating that $10 million (I would guess in stock) will be paid when ONTAK is approved (currently the rec is 14-0, but the actual approval seems to be targeted for the end of the year) and "certain of events", which could mean that initial sales have to reach some level. The second $10 million requires other events, possibly more in sales, and it's not clear to me from the above, if the second $10 million can be paid in stock (the $10 million may be cash and related to net profits). |
