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Biotech / Medical : Apricus Biosciences -- Ignore unavailable to you. Want to Upgrade?

To: oldcoach19 who wrote (1313)	6/18/2015 2:53:10 PM
From: Mirror Image	Read Replies (2) \| Respond to of 2026

Old Coach My response to your comment would be: 1- How long ago was that conversation? 2- In your next conversation with Dave Collins, ask him if a stronger dollar affects the royalty amount that Apricus receives per Vitaros Unit? As we would receive less dollars per Euro - when it is converted. Once upon a time, Apricus Management would create Corporate Presentation after Corporate Presentation and the total amount for all the Vitaros Deals would always stay the same ( around $ 210 M ). Problem with that is most of the Vitaros deals were closed in Euro's. As you might or might not know, the dollar has been growing stronger in relation to the Euro for Years now!! ( since 2011 - the U.S. dollar has seen it's value increase versus the Euro - 1 Euro= $ 1.4694 U.S. ( May 2011 ) - 1 Euro = $ 1.0646 U.S. ( Mar 2015 ). Why don't we utilize my Royalty formula using the 5 Year high of $1.4694. € 10 per Unit Sold and 12% Royalty per unit, with a Euro value equal to $1.4694 U.S. €10 x 12% = € 1.20 per Unit Sold €1.20 x $1.4694 = $1.76 U.S. Closer but still not $2.25. Why don't we look at the individual deals closer. The majority state the following: tiered double digit royalties. What does that mean? I interpret that as royalties that change depending on sales amounts. It does state "double digit". So that would be our starting point. For the sake of my argument, let's say Apricus Negotiated tiered double digit royalties with most/all of our partners in the range of 12% - 18%. 15% would be the average royalty if all Sales triggers are met. Let's change the percentage variable of my formula to the "Average Royalty" and continue to utilize the May 2011 exchange rate. €10 x 15% = € 1.50 per unit sold. €1.50 x $1.4694 = $2.20 U.S. I would think that if Apricus Management disclosed to Dave Collins what the Royalty per Unit was, it would not have disclosed the lower amount or even the higher amount. It would be "correct" of them to disclose the average amount instead ( just my opinion ). If you read the 10Q's and the 10K's, Apricus does not disclose what the royalty percentages are or any of the sales triggers that would increase the royalty percentage. My 12% - 18% royalty range is just an guess. My guess would be that at 84,400 Units sold we would continue to be at the lower royalty percentage range at this point ( also remember that that amount would be the total amount of Vitaros sold by all partners and not a single partner ). What is not a guess, is that Apricus Management were not paying attention to the Euro to Dollar fluctuation and how that affects the financials. Proof of that are all the Corporate Presentations that have been produced and had the Total amount of Vitaros deals frozen at $210 M. They even increased it to $215 M after they struck the latest deal with Sandoz for the Asia Pacific territory. It took quite a few calls to David Collins from more than one person from this board. As no other Message Board ever noticed this mistake. They have since revised the amount and show the ongoing amount in relation to current exchange rates.