Business model

The business model will be adapted based on the specific conditions on the local market. The overall objective is both to optimise the value of the Company's product and project portfolio, as well as to minimise risk in the operation. Development, registration and manufacture will be performed under the Company's own management as far as possible, while sales to end customers will take place through project licensing, product sales to selected partners or under the Company's own management.

The Company's income streams will consequently mainly comprise license income from partners as well as product sales to selected distributors. In both cases, the Company is looking for fully integrated business partners with the capacity to handle and maintain the products on the local markets.

Decisions regarding the business model will be made on the basis of income potential, regulatory complexity and costs for any local studies.

Sales via licensed partners

In markets with particular demands for costly, locally adapted studies for the approval of medication, 305547-klaria will enter into license agreements with local pharmaceutical companies regarding clinical studies, registration, sales and – if necessary – manufacture. In this case, the license income will comprise remuneration when established milestones are achieved, as well as royalties based on the licensee's actual sales. 305547-klaria’s operations are anticipated to become profitable after the first license agreement, either after one (or more) positive results from the first clinical studies (during 2016–2017) or with one (or more) license agreements directly in association with registration of individual products (during 2017–2018).

Product sales to distributors

In markets with no specific demands for locally adapted studies, 305547-klaria intends to handle all stages up to the delivery of the finished product. Sales to end customers will then take place through selected distributors. The price that partner companies pay will be agreed with regard to the sales price to the end customer, anticipated volumes and possible exclusivity.