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Biotech / Medical : InterMune (nasdaq)ITMN -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (44)	10/11/2000 11:27:20 AM
From: rkrw	Read Replies (1) \| Respond to of 508

Royalty rate is meager. Not much of a leverage play here imo. 1M shares are still there. Question is, for how long? Beginning on January 1, 2002, we are obligated to pay to Connetics a royalty of .25% of our net U.S. sales for ACTIMMUNE until our net U.S. sales surpass $1 billion. Thereafter, we are obligated to pay a royalty of .5% of our net U.S. sales. In addition, we are obligated to pay to Connetics aggregate milestone payments of $1,500,000 upon the achievement of various levels of net U.S. sales. Depending on the level of net U.S. sales, we are obligated to pay cash and/or to furnish to Connetics promissory notes that have an interest rate of the prime rate plus two percentage points.