Paul, we owe a $40M milestone payment with the first sell. Neuren will also get a minimum of 10% of gross sales proceeds. The first year that we hit $250M in sales, we’ll owe another $50M. If we sold $250M this year Neuren would get $40M+$50M+$250M (.12)= $120M
Milestone payments and royalty rates go up as sales go up.
See slide 24. http://ir.acadia.com/static-files/6242905e-8ec1-47e7-afaa-3cfae97c2466
The good news is that the Bakers have money readily available since the SGEN deal (they can cash some shares out at a discount to the final deal price anytime) if we need to raise money. I doubt that they’d need to sell the SGEN shares early, but they could.