Other side of this is if Mylan win- costs or even judgement issued against POH? How much can POH bear?
Should award ever eventuate and it is in POH favour-
In the great tradition of small biotechs the managers will want a sucess fee fr doing their job so add some millions of shares etc and exercised options to numbers IMO. Yes shareholders will capitulate and let em.
They may retain difference in costs they receive and the costs spent to keep more in POH and not distribute- a few more mill gone
Mylan will if they lose look towards appealing point of law?
May take months to get any payment, Payment may be staged and POH may like this as it gives them a future roadway of funding and retaining more as circumstances change, may be discounted if POH allow ( as suggested by POH) Mylan continue with the project or discounted with larger end % - all traps for small biotechs. New agreement with different development cost sharing arrangement comes into play.
Payment may have to be enforced and take extra time depending on which subsidiary of Mylan- currently IMO India that pays.
Mylan know they are in a strong postilion as they have time, cashflow , resources and money - 4 things POH don't regardless of outcome .
There is a lot more to this than straight line numbers on a spreadsheet but it shows a possibility.
In regards to proposed Partners waiting till arbitration is done? Why. Wouldn't a partner take advantage of POH poor position and negotiate a better deal and just have a get out of goal contract clause- ie if IP isn't POH or POH isn't viable etc etc they walk away? Wouldn't POH want em locked in an something to tell shareholders? It doesn't make sense for POH or other proposed partners to delay and stall possible product development if they can independently move forward. Depends of course on exactly what was discovered in arbitration that POH management would be aware of and be obliged to communicate if entering a contract. They don't want to be in the same position that Mylan have found themselves in
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