"As a result of the Amendment, Takeda assumes full responsibility for OMONTYS, including the ongoing recall and investigation of OMONTYS as well as any subsequent decisions as to whether the product may be subject to re-introduction if Takeda is able to complete the investigation and address the safety concerns to the satisfaction of the FDA. If Takeda decides to re-introduce OMONTYS, all of which is highly uncertain, the Company is eligible to receive royalties and (i) potential commercial milestone payments totaling up to $180 million of which $10 million is payable upon the first commercial sale after re-introduction of OMONTYS in the U.S., of which a $10 million and another $10 million relates to U.S. sales-based milestones, and of which $150 million relates to sales-based milestones in amounts as previously disclosed outside of the U.S. but now including Japan as a result of the Amendment and (ii) a potential development milestone payment of $5 million payable either upon regulatory approval in the E.U. or Japan. The royalties are tiered in the range of 13-17% with respect to net sales in the U.S. and in the range of 13-24% depending on the level of net sales by Takeda worldwide ex- U.S. "
In addition all investigation responsibilities and costs plus future production and distribution and marketing of Omontys goes solely to Takeda.
FOLKS FOLKS FOLKS....Don't be fooled by AH stock price. The agreement gives Affymax the best of both world. I think if not for manipulation this stock would open at $3 + tomorrow morning and be back at $15 within months of Omontys is back in the market.
And back Omontys will; I think this is quite obvious now.
Sentiment: Strong Buy
What is the true emphasis of the Omontys recall? Most people will look at this and think only about the health consequence but the fact is, this is business. Kidney dialysis is a multi-billion dollar business. It has generated profits for countless manufacturers and treatment facilities. Dialysis is not only a growing health concern in the US and worldwide, it is a booming business.
Your headline is word by word from today's release. This is all not just good news for Affymax but id absolutely great news. Not only the bk is now history, the future looks absolutely ideal for Affymax. While they will continue to draw substantial royalties from Omontys based on net sales in addition to get that $180 million, they can now concentrate on their next drug or even use thoes funds to buy out others.
What amazes me is how in the world was Affymax able to pull such a good deal. Also not that all responsibilities for investigation and safety concerns to satisfaction of FDA goes solely to Takeda with a very
I agree we'll see $3 soon and also agree once Omontys is re-introduced we will easily see $15 and possibly even much higher as Affymax will not shoulder any expenses while sharing profits which seems to me a better deal than before.
Sentiment: Strong Buy