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Biotech / Medical : Neurocrine Biosciences (NBIX) -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (950)	6/25/2002 5:14:48 PM
From: rkrw	Read Replies (1) \| Respond to of 1834

$100M upfront, $200M milestones, 50/50 with pfizer, ahp, glx or mrk. Or $200M upfront, $200M milestones, 20% straight royalty. imo they deserve to be paid upfront to compensate for development expenses to date, formulation work and reduced risk. I see what you're saying in suggesting they back end weight a deal, but I see no reason why they can't get both. If they can't get both, I'm with you. This is a big market with one major player in ambien. I would think it's a good territory for big pharma to come in and work their marketing magic.

To: scaram(o)uche who wrote (950)	6/25/2002 9:49:06 PM
From: Miljenko Zuanic	Read Replies (2) \| Respond to of 1834

I agree with Jim and Wilder. Why give up development cost and risk reduction milestone payments? If many (if not all) development intentions and targets were materialized than ~150-200 M in development cost and +$200 M in milestone should be reasonable. Depend on royalty schedule milestone and up-front will fluctuate (usually ~20% of the pick sale projection). In my view not less that 25% of gross sale for US, with manufacturing right to NBIX, or 40-60% of net profit split for US) If my speculation (that 34060 is mild anti-anxiety) is correct we my expect some long term benefit compared to current drug for insomnia. Until first indication (Dec.?) for the long term efficacy surface (or not surface) from PIII trials we can only speculate about financial terms. Regards the other programs milestones, GnRH antagonist: escalating multiple dose safety, CRFr antagonist: additional PIb data, PII for MS, additional PIIb for T1 diabetic children. Additional partner, MCHr-4 program. Miljenko