To: Larry Liebman who wrote (4972 ) 5/26/1998 1:19:00 PM From: Rocketman Respond to
Who knows what the range of INCY royalties could be, but it wouldn't surprise me for this to be accurate. At one point long ago, after one of their first deals, the company publicized a 1% royalty rate. However, they release no financial data on deals any longer, I think partly to make it easier to negotiate more favorable deals with new partners than constantly hearing one Pharma whine about how another Pharma got a better deal. They just customize each deal instead and each Pharma has is issues resolved individually. However, at the H&Q conference in January, in answer to a question regarding royalties, CFO Denise Gilbert said something to the effect that they had not changed the structure of the royalties. However, Denise is pretty cagey, so in my mind at least, this could mean that they originally planned a 1-9% range, for example, and were within that still, or that everything was done at 1% similar to the first announced deal, or anything in between. INCY is intentionally vague in this area, but you never know what some reporter or analyst prys out of someone. It would certainly be considered more reliable info, if they name their source.biz.yahoo.com
