Medarex deal

Merck would provide between $2.75-$4 million in the first year in R&D funding, with up to $25 million in additional funding contingent on the achievement of certain milestones as required to complete Phase III trials. After Merck's funding of the first $29 million, the companies would share development costs equally.

To satisfy half of its additional funding obligation, Merck would have the option to take a $12.5 million equity stake in MEDX through the purchase of common stock at $12.50 per share, in which case MEDX's royalty obligations to Merck would be diminished. ...