Your third area of confusion concerns Targretin revenue, which I have already explained very recently, but I'll try that one again also.
Biotechs can generate REVENUE through licensing agreements. LGND has a presence (offices) in the US, Canada, and Europe. Cancer is a worldwide problem. Thus, approval of Targetin for cancer will create a need for someone to sell the drug in areas not targeted by LGND (like Asia which is where Japan is). LGND plans to license it to third parties. I believe that LLY had worldwide rights to use of Targretin in metabolic diseases such as type II diabetes. Treatments would involve chronic use of the medication, and pricing would be considerably less than Targretin for cancer.
When LGND negotiates a distribution agreement, the third party obviously must look at the market and margins. If they license Targretin for cancer and plan to sell it at $20 per pill, they have to worry about LLY (or one of their licensees)coming in a few years later and selling Targretin at $2 per pill for type II diabetes (a much bigger target population and Targretin costs pennies per pill to manufacture). Such a pricing schedule would severely impact the licensee's margins.
Now that LGND has re-acquired rights to Targretin, the licensing deals can be for a larger amount, which could include a immediate up-front payments (which is REVENUE).
I assume about your comment that the now in the press release might be a typo was made in jest.
<<... the return of Targretin rights will now permit us to rapidly generate revenues from distribution agreements pending in territories in which we will not directly market Targretin in oncology and dermatology,'' said Ligand Chairman, President and CEO David E. Robinson.
Rapidly?? WHAT revenues?
I also wonder if the "not" is a typo for "now.">>>
If not, I'd suggest an Interpretation of Press Release 101 course (with --Tony on AMLN's clinicals):
Message 1983270 )
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