Omer- You suggested that a deal could take the following form:
<I understand that PARS wouldn't want a very big equity investment (they don't want to dilute us), and I guess our deal will shift some of the cash from that part to either the up-front or R&D payments.
So, I guess PARS' deal will look something like this:
$10 - $12 million up front payments
$7 R&D payments
$15 - $20 milestone
$5 equity stake
Partner pays for P III
PARS gets ~12% - 15% royalties (varry from region to region). >
I just want to make sure I understand-this is my interpretation:
Up front payments-- No Pharmos expenses, hence drops to the bottom line
R&D payments - Allow additional research on HU211, payments offset additional expense (beyond the current level of approx. $500,000/mo)
Milestone Payments- essentially no expense associated with them, hence drop to the bottom line
If my interpretation is correct, this could mean almost a buck to the bottom line by the end of phase III. Add to that the current approved Alrex and Lot. will pay operating expenses (and more), this provides a tremendous opportunity for yearend 1999- if things go right, $10 does not seem out of line.
Subsequent to a successful Phase III, we potentially have 10-15% of a very large number- 500MM- 1B. Potentially getting the stock price in the $20 range. Ah--- dreaming--------something to look forward to in 1999, so we can look beyond the current price.
Tony |
