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Omeros Corporation Message Board

  • rrtzrealmd rrtzrealmd Apr 12, 2013 10:58 AM Flag

    I mean, seriously, has anyone...

    ...EVER seen a small biotech stock making MILESTONE PAYMENTS to the company it licensed its drug from?...

    ...can ANYONE find another company that has done that?...

    ...it seems really pretty bizarre to me that OMER signs a deal with Daiichi where OMER has to PAY Daiichi up to 33.2 MILLION dollars as certain milestones are reached...

    ...I mean, every deal I looked at has the BIG pharma paying the little biotech as the little biotech makes the milestones...and that makes sense since the payments both finance continued development and act as an incentive for the biotech which typically is cash starved...

    ....but staring at 33.2 million in milestone payments has to be a DISINCENTIVE for OMER to develop PDE7, right?...

    ...I mean the company will be broke in a couple of more months and OMER;s only source of income is the 60 MILLION dollars worth of stock that they can sell at ANY TIME and at ANY PRICE...

    ...but even then, when you're planning THREE new trials PLUS paying for ones already ongoing PLUS paying 2 MILLION dollars in interest a year on your debt PLUS paying 4 MILLION dollars rent and other expenses a year on a fancy new office building, how can you expect to face milestone payments?...

    ...so something has to go on the shelf, right?...and the one you're going to have to shuck out milestone payments for seems like a reasonable choice, right?

    ...not to mention, even after completing development Daiichi will still get to collect ROYALTIES on any sales to boot...

    ...regardless, back to my original question, can anyone find a deal where the little biotech was saddled with milestone payments to the big pharma while developing a new drug?...

    Sentiment: Strong Sell

 
OMER
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