If Braeburn develops or buys a competing product, that product will cannibalize Probuphine sales and Titan will receive a 1% royalty of the competing product. Let's say the new product captures $100M of the market...... 30% from Titan and 70% form RB.
Probuphine sales would have been $30 million higher without the competition and Titan would have received about $4.5M more in royalties.
By allowing Braeburn to compete with them, Titan will get 1% of the $100M or $1M.
Sunil just gave away $3.5M under that scenario in one year.
The more that product is successful, the more Titan will lose under the agreement.
Which product do you think Braeburn would push, The one that they have to pay a 15% royalty on or the 15% royalty product?
But, yiorgio, you are now referring to section 6.2(c) .......
section 6.2(b) has to do with outside competition, such as RB's Atrigel getting approved.
In that case the Probuphine royalty will be reduced.
The low single digit royalty capped at $50M refers to competing products marketed by Braeburn.
Section 6.2(b) reduces the royalty if there is the entrance of new competition.
Why would Sunil agree to allow Braeburn to compete with Probuphine and why would he agree to a reduced royalty if/when competition enters the market?
That's a significant part of the agreement.
It's not practical to believe that there will be no competition.
Titan has no choice in the matter.
nobody will attend.
Deliveryboy will be dressed in drag for Little Stevie.
"(b) Notwithstanding the above, on a country-by-country basis, upon the occurrence of any Competition, the Royalties otherwise payable by Braeburn to Titan under Section 6.2(a) shall be REDUCED to [*****] percent ([*****]%) of Net Sales, provided that for the Calendar Year in which such Competition occurs, the REDUCTION in Royalties shall be applicable only from and after the effective date of such Competition."
Look up the definition of "reduced". It means decreased.
yiorgio, section 6.2(b) is written in plain English.
So what? They issued a CRL.
Perhaps RB paid somebody off.
Deal with the reality of the situation instead of pounding your head against the wall.
The projected market for Probuphine is small.
Titan's royalty is small and will probably get smaller.
There's not much left at Titan.
Sunil cleaned you out and gave the spoils to Deerfield, Rodman and Braeburn.
before you fall in.
Did Kimmie let you down?