Thanks again Thoth, great post as usual. I wasn't being lazy, i just didn't know how to research it. I hope my extra £2.5K is in good hands. I think things with Sierra must be moving quicker than anticipated judging by their SP and director buy. All looking good IMO.
The guy who bought the shares is James Topper and he is on the Sierra board on behalf of Frazier Life Science whos main aim is to help companies like Sierra to bring their products close to fruition and then sell on So I would guess he has a bit of insight as to progress and he would not have laid out that money without thinking there was an end product In my opinion we are due some news pretty soon
however, there will also be force majeure etc type clauses. So if (when) Sierra sell the asset on (maybe during P2 or 3), we will get a % of the on sale fee or crystallise some milestones early. Im not privy to the contract, but expect to get a windfall when Sierra sell the asset on at some point or get bought out themselves.
shoestring. I have done a little research on milestones. and a benchmark is roughly doubling each time so my guess is £2m trial start (received) £4m end phase 1 £8m end phase 2 £16m end phase 3 £32M New drug application/ FDA filing £64m approval
it wont be exactly like that, but as a typical structure may not be that far off.
"Under the terms of the agreement, an immediate upfront payment of US$7.0 million is due to the co-investment partners and an additional fee of up to US$2.0 million will be payable upon the successful transfer of the two ongoing Phase 1 clinical trials to ProNAi. Additional payments in the aggregate amount of up to US$319.5 million may become payable upon achievement of certain development, regulatory and commercial milestones. ProNAi will also owe high single to low double digit royalties on the net sales of any product successfully developed.
Under Sareum's agreements with Cancer Research Technology and the CRT Pioneer Fund, Sareum is entitled to 27.5% of these payments. Therefore, Sareum will receive (i) US$1.9 million as an upfront payment, (ii) potential future milestone payments of up to US$88.4 million, some of which are expected to be paid within the next twelve months upon certain development milestones being met and (iii) its share of any sales royalties. "
The " some milestone payments are expected in the next twelve months"
Anyone know, or guess what figure we would be talking about as our next milestone payment upon certain developments?
Wonder how that works, if the director bought $8 million worth of shares on the open market then the company released good news several weeks after would that be classed as insider dealing. But, have a placing for the good of the company, buy $8 million of those shares on the open market, then release a good update, that route it seems legally okay ???
I like it but a bit confused. Is this a back door way of legally cashing in or am I reading it wrong.......anyone ??
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