I said it is speculated that royalty rates are 10-20%. Let's flesh that out a bit.
One source says pharmaceutical royalties range from 8-18%. It matters as to where the product is in the regulatory approval process--preclinical, Phase I, Phase II, Phase III, pending approval, approved. One source says a product in Phase III receives on average a 14.1% royalty. Is it possible that the delay of signing the deal with Jubilant is related to starting Phase III and obtaining a higher royalty rate?
If the range is 8-18%, possibly (but not necessarily) the average rate is 13%. Presumably a therapeutic is going to command a higher rate than a diagnostic. Jed said in the 2nd Qtr conference call that they had agreed to "an above average royalty rate."
So what rate should we use in figuring out top line revenues to NAVB? IMO 12% on the low side and 15% on the high side.