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Curis, Inc. Message Board

  • billygbillyg billygbillyg Aug 12, 2014 12:48 PM Flag

    Erivedge Royalties

    The only information I've been able to find on Erivedge Royalties to Curis says that Curis will receive a tiered, escalating sales royalty starting at mid single digit. It seems to currently be at 5%; does anyone know how high the royalty percentage can go and what is needed to trigger a percentage increase above the current 5% rate.

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    • 10-Q

      Pursuant to the terms of our collaboration agreement with Genentech, we are entitled to a royalty on net sales of Erivedge. The royalty rate escalates from 5% to 7.5% based on worldwide annual net sales ranging from less than $150 million to $600 million. The royalty rate applicable to Erivedge may be decreased by 2% (such that the applicable royalty rate will range between 3% to 5.5%) in certain specified circumstances, including when a competing product that binds to the same molecular target as Erivedge is approved by the applicable regulatory authority and is being sold in such country by a third party for use in the same indication as Erivedge or when there is no issued intellectual property covering Erivedge in a territory in which sales are recorded.

      Sentiment: Strong Buy

    • Up to "high single digits" upon meeting certain sales milestones. That's all I know.

      • 1 Reply to jan31
      • Thanks, that's encouraging news. If Erivedge can keep growing at a 40% clip next quarter Curis should be able to start keeping some of the royalties over 2 million. The first 2 million it has to use to pay off it's 30 million loan. I believe Curis expects to have the loan paid off by the end of 2016 so then they will be in great shape financially as the royalties could be quite significant by then. With plenty of cash there is no need to do a secondary offering before then. I initially though taking out a 30 million dollar loan at 12.5% interest may not have been to wise but if it prevents a dilution of the stock by eliminating a secondary offering then maybe management knew what they were doing

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