“Instead of getting all of the the money up front, there is a back-end requirement, be it a target, a milestone, a FDA approval, if you will, something that is contingent. And if that event occurs, then an additional payment is made.”

Brian Terrace · FDA Watch · FDA Legal, Regulatory & Compliance Issues, Part 4: Mergers & Acquisitions

Play from 5:35
5:35

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What was described

use contingent consideration (back-end milestone payments tied to FDA approval or other targets) instead of paying the full purchase price up-front

$20 million product example; $10 million product example

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