1 In the 2018 financial year about 75% of the POH revenue from external customers was generated in Switzerland in the Personal Care segment.In 2017 this sector generated nil revenue.
The entry of $1,050,802 relates to Vital ET sales to Ashland Industries Europe GMBH, which is based in Switzerland. It is named on the first page of the report. No sales were recorded for Ashland in 2017 as the company stopped ordering while it worked through excess stock. In 2016, sales to Ashland Industries Europe GMBH were $809,146.
2"Strides agreed to forego all claims against Phosphagenics including costs, in consideration of a one-off cash payment of 100,000 GBP (AUD $184,877), that was accrued at 31 December 2018. In addition Strides was granted: i) first right of refusal to “all POH human TPM® assets existing and not otherwise encumbered” at signing of the agreement, the terms of which will be negotiated in good faith at a later time, and ii) a discount on the upfront, milestone and/or royalty payments associated with any/all deals which Strides completed with POH to a total accumulated value of the lesser of: i) 5 million GBP; or ii) the costs claimed and submitted to SIAC as part of the SIAC Arbitration No. 001 of 2016 and SIAC Arbitration No. 002 of 2016"
This isn't new. It was already stated in the 19/12/18 announcement of Phosphagenics’ settlement with Mylan and discussed at the time.
Strides has first right of refusal for POH’s unencumbered, existing, human TPM assets. Basically, Strides has a contractual guarantee that it can match any bid that POH receives for any of its unencumbered, existing, human TPM assets. POH isn’t free to partner with anyone else, with respect to such assets, for the same or for a lesser amount than that offered by Strides.
Another company in which I’m invested (Neuren) has something a bit similar in its “first right of negotiation” agreement with US biopharma, ACADIA. The wording in that agreement is as follows
If, despite good faith negotiation by Neuren, the parties fail to reach an agreement with respect to the Compound and Product outside the Territory within such […***…]-day period (or such extension as the parties may mutually agree), then Neuren shall be free to enter into a license agreement with a Third Party with respect to the relevant Compound or Product with the same scope of rights as those offered to ACADIA; provided that, for a period […***…] after the end of negotiations between the parties, any such license agreement with a Third Party shall be on terms and conditions that are no more favourable to the Third Party than the terms and conditions last offered by ACADIA.
With respect to any deal that does eventuate with Strides, Strides is entitled to repayment of its arbitration costs via discount on payments to POH in the form of upfronts, milestones or royalties, to a maximum value of 5m GBP.
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