New to BNC so I am trying to get the story straight and was hoping the long timers can help me out:
Endo now has global rights to Urocidin. If all milestones are met, they will owe Bioniche around $90M in additional payments. Then ENDO gets all revenue except for this sales-based percentage which has not yet been publically disclosed. Is this correct?
Gross profit would be the price - COGS, so they must be expecting a transfer price above 25%.
I have no idea what it takes to manufacture this, and I kind of suspect ENDO doesn't either. That would explain the somewhat uncommon terms. ENDO took any "risk" of manufacturing cost overruns off their hands, and probably will pay a bit more (than a normal royalty deal) to BNC for that reason.