Note 8 - Subsequent Event

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

Note

8

– Subsequent Event

Torii Commercialization and License Agreement

On

November 5, 2019,

the Company announced that it had entered into a Commercialization and License Agreement (the “Torii Agreement”) with Torii Pharmaceutical Co., Ltd. (“Torii”), granting Torii the exclusive right to commercialize

BCX7353

in Japan. Under the Torii Agreement, the Company will receive an upfront, non-refundable payment of

$22,000

and

may

be eligible to receive an additional milestone payment of either

$20,000

if Japan’s Pharmaceuticals and Medical Devices Agency (the “PMDA”) grants regulatory approval on or before

December 31, 2020,

or

$15,000

if regulatory approval is granted on or before

December 31, 2021.

In either case, the regulatory milestone payment is contingent upon receipt of a reimbursement price approval from Japan’s National Health Insurance system in excess of the threshold specified in the Agreement. In addition, the Company will be entitled to receive tiered royalty payments based on the amount of annual net sales of

BCX7353

in Japan during each calendar year. If

BCX7353

maintains its Sakigake designation during the PMDA review, the tiered royalty rate will range from

twenty

percent to

forty

percent of net sales, otherwise, the tiered royalty rate will range from

fifteen

percent to

thirty-five

percent of net sales.