The updated terms14 Mar 2022 21:29
Under the terms of the original CRT License Agreement, additional milestone payments of up to an aggregate of $319.5 million were payable to CPF upon the achievement of certain developmental, regulatory and commercial milestones, including a milestone payment of $7.5 million upon the dosing of the first patient in the first Phase 1 trial of SRA737 in the United States, and a payment of $12.0 million upon the dosing of the first patient of a randomised Phase 2 trial of SRA737.
Pursuant to the terms of the Amendment, Sierra and CPF have agreed to a decrease in the additional milestone payments of up to an aggregate of $290.0 million that may be payable to CPF upon the achievement of certain developmental, regulatory and commercial milestones, including a milestone payment of $2.0 million upon the dosing of the first patient of the first trial of SRA737 following the Amendment.
In the event that the milestone payment for a milestone event, as defined in the CRT License Agreement, becomes due, but no milestone payment for an earlier milestone event has been paid, then the milestone payment attached to the earlier milestone event will automatically become due and payable contemporaneously with the payment for the later milestone event. Sierra will accrue for any future milestones payments once they are considered probable of occurring.
In addition, Sierra remains required to pay CPF, on a product-by-product and country-by-country basis, tiered high single-digit to low double-digit royalties on the net sales of any product successfully developed.
Sareum continues to be eligible for 27.5% of the economics of the CRT License Agreement, as amended.
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