Presumably Zachs has it correct.They certainly do. link to 10Q from yahoo http://biz.yahoo.com/e/121107/exel10-q.htmlUnder the terms of our agreement with Genentech, we are entitled to an initial equal share of U.S. profits and losses for GDC-0973 (XL518), which will decrease as sales increase, and will share equally in the U.S. marketing and commercialization costs. The profit share has multiple tiers--we are entitled to 50% of profits from the first $200 million of U.S. actual sales, decreasing to 30% of profits from U.S. actual sales in excess of $400 million. We are entitled to low double-digit royalties on ex-U.S. net sales. We also have the option to co-promote in the United States. The co-promotion option would allow us to provide up to 25% of the total sales force for GCD-0973 (XL518) in the United States. We must exercise the co-promotion option within 12 months of receiving notification of first patient dosed in first phase 3 clinical trial of GDC-0973 Isn't a drug rep's salary considered marketing and commercialization cost? If so, I would imagine Exelixis should co-promote if the salesforce is a fixed number regardless of whether they are Genentech or Exelixis reps.
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