The 2020 JP Morgan Healthcare Conference was loaded with insights from key pharma companies. An analysis of events and catalysts that were announced or updated at the conference these days are included. Our PharmaShots team summarized the key deals which were presented during the updates from companies from Jan 13 to Jan 16, 2020.

Date - Jan 13, 2020

1. Bristol-Myers Squibb

• In 2019, BMS completed the acquisition of Celgene, created a leading biopharma company
• Celgene shareholders received for each share, 1.00 share of BMS common stock, $50.00 in cash without interest and one tradeable Contingent Value Right (CVR), which will entitle the holder to receive a payment of $9.00 in cash if certain future regulatory milestones are achieved
• Upon completion of the acquisition, Celgene becomes a wholly-owned subsidiary of BMS

2. Gilead Sciences

• In 2019, Gilead Sciences and Galapagos NV entered into a 10-year global R&D collaboration
• Galapagos will receive a $3.95B upfront payment and a $1.1B equity investment from Gilead
• Gilead will gain access to an innovative portfolio of compounds, including 6 molecules currently in clinical trials, more than 20 preclinical programs and a proven drug discovery platform

3. MorphoSys

• MorphoSys AG and Incyte Corporation have entered into a collaboration and license agreement to develop and commercialize MorphoSys' proprietary tafasitamab (MOR208, anti-CD19 Ab)
• MorphoSys and Incyte will co-commercialize tafasitamab in the US, while Incyte has exclusive commercialization rights outside of the US
• The development cost of global and US-specific trials at a rate of 55% (Incyte) to 45% (MorphoSys) will be shared; Incyte will cover 100% of the future development costs for trials that are specific to ex-U.S. countries

4. Merck KGaA

• In Feb 2019, Merck KGaA signed an alliance with GlaxoSmithKline (GSK) involving its P-II lung cancer program M7824
• Merck KGaA received an upfront of $341M (£260M) and is eligible for potential development milestone up to 500M (£440M) triggered by data from the M7824 lung cancer program
• With this alliance, both companies have the leadership position in this new class of immunotherapies, specifically leveraging TGF-ß biology

5. Catalent

• In Mar 2019, Catalent acquired Paragon Bioservices, to strengthen its gene therapy portfolio
• Paragon received $1.2B upon signing the agreement. With the closure, Catalent received $950M in term loan and issued $650M of a new series of convertible preferred stock to fund affiliated with Leonard Green & Partners, L.P.
• The acquisition was completed in May 2019

6. Ironwood Pharmaceuticals

• In Jan 2020, Ironwood completed the separation of Cyclerion Therapeutics and becomes a GI-focused healthcare company
• In Sep 2019, Ironwood amended its 2012 collaboration, with AZ to develop and commercialize Linzess in China. AZ amended its license deal with Ironwood and will obtain exclusive rights to develop, manufacture & commercialize Linzess in China. Ironwood received up to $125M including non-contingent payments totaling $35M paid in 3 installments through 2024 and up to $90M in commercial milestones on the achievement of certain net sales targets
• In Aug 2019, Ironwood and Alnylam entered into US GI Disease Education and Promotional Agreement for Alnylam's Givosiran in Acute Hepatic Porphyria (AHP)

7. Jazz Pharmaceuticals 

• In Dec 2019, PharmaMar and Jazz Pharmaceuticals signed an exclusive license agreement for Lurbinectedin in the U.S.
• PharmaMar received an upfront $200M with potential regulatory milestone payments of up to $250M upon the achievement of accelerated and/or full regulatory approval of lurbinectedin by FDA within certain timelines
• PharmaMar is also eligible to receive up to $550M in potential commercial milestone payments, as well as incremental tiered royalties on future net sales of lurbinectedin ranging from the high teens up to 30 percent

8. Neurocrine Biosciences

• In Jan 2019, Neurocrine Biosciences and Voyager Therapeutics entered a strategic collaboration focused on the development and commercialization of Voyager's gene therapy programs, VY-AADC for Parkinson's disease and VY-FXN01 for Friedreich's ataxia, as well as rights to two programs to be determined
• Neurocrine Biosciences has agreed to pay Voyager $165M in cash including a $115M upfront payment and a $50M equity investment at a Voyager per share price of $11.96
• Voyager received funding from Neurocrine Biosciences for all costs incurred on the collaboration programs. In addition, Voyager may be entitled to earn up to $1.7B in development, regulatory and commercial milestone payments across the four programs

Date - Jan 14, 2020

9. GlaxoSmithKline

• In Aug 2019, GSK completed the transaction with Pfizer to form new world-leading consumer healthcare joint venture with combined sales of approximately $12.7B
• In Jan 2019, GSK completed the acquisition of TESARO making total deal value ~$5.1B, with an acquisition price of $75/share in cash representing 110% premium to TESARO's 30-day VWA price of $35.67
• In Feb 2019, GSK and Merck KGaA announced a global alliance to jointly develop and commercialize Merck KGaA's M7824. Merck KGaA received $341M (£260M) up front and development milestone up to $569M (£440M) triggered by data from the M7824 lung cancer program, plus future approval and commercial milestones of up to $3.3B (£2.5B)  

10. Alexion

• In Jan 2020, Alexion completed the acquisition of Achillion, molecule Factor D inhibitors to treat people with complement alternative pathway-mediated rare diseases, such as paroxysmal nocturnal hemoglobinuria (PNH) and C3 glomerulopathy (C3G)
• Achillion to receive $6.30/share of own common stock, which is approximately $930M
• Achillion shareholders are eligible for $2 CVRs if certain clinical and regulatory milestones are met within specified periods including $1/share for FDA approval of danicopan and $1/share for P-III initiation of ACH-5228

11. Amgen 

• In Jan 2020, Amgen signed a collaboration with BeiGene to expand its oncology footprints in China
• The companies collaborated to advance 20 medicines from Amgen's innovative oncology pipeline in China and globally. BeiGene will share global R&D costs and contribute up to $1.25B to advance these medicines and will receive royalties on sales (ex-China) except for AMG 510. Post-approval of therapies including AMG 510 in China, BeiGene to get commercialization rights in China for 7 yrs. and will retain rights for 6 therapies (ex AMG 510) in China after 7 yrs. The companies will share profits equally in China until the reversion. Post reversion, Amgen will pay royalties to BeiGene on sales in China for 5 years
• Amgen has acquired a 20.5% stake in BeiGene for ~$2.8B in cash, with $174.85/share representing a 36% premium. BeiGene to get exclusive commercialization rights for Xgeva, Kyprolis, and Blincyto in China and will retain right for one plus receive royalties for 5 yrs, and with equal profit-loss share & rights for two of them will revert to Amgen post 5 & 7 yrs.

12. Eli Lilly

• In Feb 2019, Eli Lily acquired Loxo Oncology in an all-stock transaction for $8B
• Loxo to receive $235/share in cash making $8B as total deal value, including premium based on its last day closing share price value
• Lilly to acquire Dermira for $1.1B, expanding its portfolio of P-III therapies with the addition of lebrikizumab (IL-13 Ab), being studied in P-III to treat moderate-to-severe atopic dermatitis

13. Novo Nordisk 

• In Apr 2019, Gilead and Novo Nordisk collaborated on a clinical trial combining compounds from their respective pipelines in NASH
• The focus of the collaboration is to combine Gilead and Novo's expertise for the enhancement of research capabilities and approaches to developing novel therapies in NASH
• The intended clinical trial will be a POC study combining Novo Nordisk's semaglutide (GLP-1 analogue), Gilead's cilofexor (FXR agonist) and firsocostat (ACC inhibitor) for the treatment of patients with NASH

14. Sanofi

• In Jan 2020, Sanofi completed the acquisition of Synthorx to bolster its immuno-oncology pipeline for $2.5B
• The acquisition strengthens Sanofi's immuno-oncology pipeline with THOR-707. Synthorx shareholders will receive $2.5B for at $68/share at a premium of 172% to Synthorx's closing price on Dec 6, 2019
• Synthorx's lead immuno-oncology product candidate, THOR-707, is a variant of IL-2, is in clinical development in multiple solid tumor types as a single agent and combination with immune checkpoint inhibitors

15. Kodiak Sciences

• In Dec 2019, Kodiak signed an agreement with Baker Bros to sell rights on global sales of KSI-301 for $225M
• Baker Bros Advisors purchased a capped 4.5% royalty on net sales of the company's anti-VEGF Abbiopolymer conjugate therapy known as KSI-301 to be paid upon marketing approval in exchange for $225M in committed development funding payable to the company (the 'funding amount')
• In an instance where Kodiak develops anti-VEGF containing follow-on products to KSI-301, there may be royalties of 1.5-2.25% owed on these products, but total payments under the funding agreement will never exceed the cap of 4.5 times the funding amount paid to the company

16. Ultragenyx

• In Dec 2019, Ultragenyx has sold to Royalty Pharma for $320M a royalty right due to Ultragenyx from Kyowa Kirin for the net sales of Crysvita (burosumab) in the EU, the UK, and Switzerland
• If Royalty Pharma received 1.9 times of the funding amount i.e $320M by Dec 2030, then the agreement will terminate else the company will collect equal to or greater than 2.5 times the purchase price
• In Aug 2019, Ultragenyx signed a partner and option to acquire agreement with GeneTx to advance the treatment for Angelman Syndrome
• Ultragenyx got an exclusive option to acquire GeneTx within 30 days of the IND approval of GTX-10 and have the right to extend the option paying $25M until the first dosing of P-I/II studies. GeneTx received $20M upfront and will fund all development activities during the option period, sharing the regulatory and scientific expertise
• Upon exercising the option, Ultragenyx will pay an initial purchase price and contingent milestones, plus royalties

17. Coherus

• In Nov 2019, Coherus acquired exclusive commercialization rights of Bioeq's biosimilar candidate to Lucentis (ranibizumab) in the US. In Q4'19, Bioeq plans for BLA submission with the FDA with the expected launch in 2021
• Bioeq received upfront as well as other regulatory and launch milestone payments. The companies will share profits approximately equally
• Lucentis is an anti-VEGF therapy, act by destroying the tissue in the eye responsible for the elevation of VEGF and developed by Genentech & Novartis with its US rights belonging to Genentech and ROW rights to Novartis

18. Quantum Leap Healthcare

• In Jan 2020, Quantum Leap Healthcare and G1 Therapeutics entered a collaboration to evaluate trilaciclib with CT, for the ongoing I-SPY 2 TRIAL (Investigation of Serial Studies to Predict Your Therapeutic Response with Imaging And moLecular Analysis 2) for neoadjuvant treatment of LA breast cancer
• The I-SPY 2 TRIAL is designed to evaluate agents to accelerate the pace of promising effective and potentially less, toxic treatments to patients who are most likely to benefit quickly
• Trilaciclib is a novel therapy designed to improve outcomes for patients being treated with chemotherapy and has also received BT Designation from the FDA, a rolling NDA submission for SCLC with expected completion in the Q2'20

19. Karyopharm

• In Sep 2019, Karyopharm enters into a royalty agreement with Healthcare Royalty Partners for up to $150M
• Karyopharm will receive $75M up front and an additional $75M upon the achievement of future regulatory and commercial milestones and subject to approval by both parties
• Karyopharm expects that the $75M initially received from HCR under this royalty agreement, combined with its existing cash, cash equivalents, and investments, together with the cash expected to be generated from product sales, will be enough to fund its operations into the middle of 2021

Date - Jan 15, 2020

20. AbbVie

• In Jun 2019, AbbVie acquired Allergan in cash & stock transaction making total deal value $63B, based on the closing price of AbbVie's common stock of $78.45 on Jun 24, 2019
• Allergan shareholders to receive 0.8660 shares in AbbVie and $120.30 in cash for each share in Allergan for a total consideration of $188.24 per share of Allergan. The transaction represented a 45% premium
• The focus of the acquisition was to expand AbbVie's revenue base with the addition of Allergan's medical aesthetics and ophthalmology portfolio
• In Feb 2019, AbbVie and Morphic Therapeutic have entered a research and development collaboration designed to advance several Morphic's oral integrin therapeutics for fibrosis-related indications
• AbbVie paid Morphic an upfront of $100M for exclusive license options on product candidates directed at multiple targets. For each compound, Morphic will conduct R&D activities through the completion of Investigational New Drug (IND)-enabling studies, at which point AbbVie may pay a license fee to exercise its exclusive license option and assume responsibility for global development and commercialization
• Morphic is also eligible for additional, undisclosed clinical and commercial milestone payments and tiered royalties on worldwide net sales for each compound. Morphic retains cost-sharing rights in the development of liver fibrosis indications and may opt into paying a percentage of AbbVie's development costs in exchange for enhanced royalties33

21. BeiGene

• In Oct 2019, BeiGene signed an exclusive commercialization agreement with Amgen for its Xgeva (denosumab), Kyprolis (carfilzomib), and Blincyto (blinatumomab) in China
• BeiGene will commercialize XGEVA, KYPROLIS, and BLINCYTO in China for five or seven years, during which time the parties will equally share profits and losses. Following the commercialization period, BeiGene will have the right to retain one product and will be entitled to receive royalties on sales in China for an additional five years on the products not retained
• Amgen and BeiGene will co-fund global development costs, with BeiGene contributing up to $1.25B worth of development services and cash over the term of the collaboration. BeiGene is entitled to receive royalties from global sales of each product outside of China, except for AMG 510

22. Alkermes

• In 2020, Biogen is going to launch Vumerity (ALKS 8700), while Alkermes to get royalties on sales of the product. Vumerity is oral MMF P-III candidate targeted for relapsing forms of MS
• In Nov 2017, Biogen signed an exclusive global license agreement with Alkermes to develop and commercialize ALKS 8700 for relapsing forms of MS. Alkermes to get $28M up front, up to $200M certain clinical and regulatory milestone
• In Nov 2019, Alkermes acquire Rodin Therapeutics. Rodin shareholders received $100M upfront and up to $850M on certain achievement by Rodin's development candidates of certain specified clinical, regulatory and commercial milestones and with expected closure in Nov 2019

  23. Almirall

• In Jul 2019, Almirall exercised its option to license the development and commercialization rights for Lebrikizumab to treat atopic dermatitis in the EU. In Feb 2019, Dermira signed an exclusive option and license agreement with Almirall for Lebrikizumab. Dermia received $30M up front, $50M option exercise-fee (if exercised), and up to $115M in milestones, plus royalties
• In Jan 2020, Eli Lilly proposed to acquire Dermira for $1.1B, at $18.75/share representing a premium of 86% to the 60-day VWA trading price of Dermira's stock ending on January 9, 2020, with the expected closure of agreement in Q1'20
• In Jan 2020, Almirall entered into an option agreement to acquire Bioniz Therapeutics. Bioniz granted Almirall an option to acquire the company. Bioniz received $15M up front, a $45M option fee, and milestone, plus royalties
• In Jan 2020, Almirall signed a research partnership with WuXi to develop bispecific antibodies for atopic dermatitis using WuXi's WuXiBody antibody platform.
• Additionally, in early 2020 Almirall signed an agreement with 23andMe to get exclusive WW rights to develop and commercialize a bispecific mAb which blocks all three members of the IL-36 cytokine subfamily for multiple inflammatory diseases, including various dermatological conditions and will be responsible for clinical studies of therapies

24. Morphosys

• In Jan 2020, Morphosys signed a worldwide co-commercialization agreement with Incyte for tafasitamab (MOR208)
• MorphoSys received $750M upfront, an equity investment of $150M in ADS of MorphoSys, up to 1.1B milestones and royalties on sales of Tafasitamab (Ex- US). The companies will jointly commercialize Tafasitamab in the US with equal profit & loss sharing
• Incyte will hold exclusive commercialization rights of the product outside the US and will lead the commercialization strategy and book all revenues from sales of Tafasitamab outside the US. Additionally, the companies will share development cost in global and US-based studies at 55% (Incyte) to 45% (MorphoSys) while Incyte will be wholly responsible for the product development (Ex- the US)

25. Akebia

• In Apr 2019, Vifor expanded its commercialization of vadadustat to certain third-party dialysis organizations to up to 60% of the US dialysis patients. Additionally, Akebia is eligible for $5M in R&D milestones
• In May 2017, Akebia and Vifor Pharma signed an exclusive license agreement to sell vadadustat to Fresenius Medical Care dialysis clinics in the US, for the treatment of anemia associated with CKD
• Vadadustat is an oral hypoxia-inducible factor prolyl hydroxylase inhibitor currently evaluated in P-III trial targeted for anemia due to CKD

26. Amneal

• In Nov 2019, Amneal signed an exclusive license agreement to develop and commercialize K127 with Kashiv BioSciences for Myasthenia Gravis
• Kashiv received $1.5M up front and up to $16.5M development and regulatory milestones, plus royalties. Amneal got exclusive rights to develop and commercialize K127 for Myasthenia Gravis in the US
• In Dec 2019, Amneal acquired AvKARE with 65.1% majority interest leading to a deal value of $340M, with the focus to enhance its access to the federal healthcare market

27. Eagle Pharma

• In Jan 2020, Eagle signed a research collaboration with NorthShore University Health System to study Eagle's Ryanodex (dantrolene sodium) for traumatic brain injury in animal models
• In Jan 2020, Eagle signed an exclusive WW license agreement with the University of Pennsylvania to develop dantrolene sodium to treat Alzheimer's disease
• Ryanodex (dantrolene sodium) is the first therapy to treat brain damage secondary to nerve agent exposure

28. Esperion

• In Jan 2019, Daiichi signed an exclusive license agreement with Esperion for Bempedoic Acid and the Bempedoic Acid / Ezetimibe Combination Tablet in the EEA and Switzerland
• Esperion received a $150M upfront payment and is eligible for up to $1.05B in milestones, plus royalties. Daiichi Sankyo received exclusive commercialization rights to bempedoic acid and bempedoic acid / ezetimibe combination therapy for LDL-C lowering and CV risk reduction in the European Economic Area and Switzerland
• The combination therapy involves bempedoic acid (inhibition of cholesterol synthesis) and ezetimibe (inhibition of cholesterol absorption) tablet is a non-statin, orally available, once-daily, LDL-C lowering therapy

29. Morphic

• In Feb 2019, Morphic signed a research collaboration with Janssen to develop and commercialize oral integrin therapies
• The companies collaborated for pre-clinical development for the identification and advancement of therapies. Post completion of IND studies, Janssen has the rights to exclusively option the license compounds and will be responsible for global clinical development and commercialization. Morphic received undisclosed up front, $725M preclinical development, clinical and commercial milestone plus royalties on sales
• Integrins are ubiquitous family of receptors expressed on the surface of most human cell and are dimers comprising one a (alpha) subunit and one ß (beta) subunit

30. BioCryst Pharmaceuticals

• In Nov 2019, BioCryst signed an exclusive license agreement with Torii Pharmaceutical for BCX7353 to treat prevention of hereditary angioedema (HAE) attacks in Japan
• BioCryst received $22M up front and up to $20M in milestones, plus mid-teens to 40% royalties on sales in Japan. Torii to get exclusive rights to commercialize BCX7353 in Japan for HAE attacks
• BCX7353 is an oral, once-daily treatment for the prevention of HAE attacks

31. Mylan

• Theravance Biopharma and Mylan received NDA from the FDA for YUPELRITM (revefenacin) inhalation solution for the maintenance treatment of patients with COPD
• YUPELRI, a long-acting muscarinic antagonist (LAMA), is the first and only once-daily, nebulized bronchodilator approved for the treatment of COPD in the US
• In two replicate pivotal P-III efficacy studies, YUPELRI demonstrated statistically significant and clinically meaningful improvements vs PBO in trough forced expiratory volume in one second (FEV1) and in overall treatment effect on trough FEV1 (OTE FEV1) after 12 wks of dosing

32. PharmaEssentia

• PharmaEssentia out-licensed the exclusive rights to develop and commercialize ropeginterferon alfa-2b to AOP Orphan in PV, other MPNs, and CML for EU, CIS & ME markets
• PharmaEssentia and AOP Orphan received positive CHMP Opinion for Besremi (Ropeginterferon alfa-2b) to treat Polycythemia Vera (PV) in EU
• The positive CHMP opinion is based on the comprehensive data package from the PROUD-PV/CONTINUATION-PV clinical development program, which was sponsored by AOP Orphan

33. Novartis

• In Feb 2019, Novartis exercised its option to license antisense oligonucleotide TQJ230, triggering a $150 million payout that Akcea Therapeutics will share with Ionis Pharmaceuticals
• In Jan 2017, Novartis and Ionis signed an agreement for antisense therapies making total deal value $1.65B
• TQJ230, formerly known as AKCEA-APO(a)-Lrx, is designed to lower levels of Lp(a) by inhibiting the production of apolipoprotein(a), thereby stopping a dangerous form of low-density lipoprotein from collecting in the arteries and blocking the supply of blood

Date - Jan 16, 2020

34. AMAG Pharmaceuticals

• In Jan 2019, AMAG Pharmaceuticals completed the acquisition of Perosphere
• AMAG paid Perosphere equity holders $40M in cash & $10M in convertible notes and paid $12M of Perosphere's term loan indebtedness and assumed $6.2M of Perosphere's other liabilities. Perosphere equity holders will also receive $140M regulatory milestones, $225M commercial sales milestones and the first sales milestones $20M on achieving net sales of $100M
• Additionally, in 2019 the company plans for divesting its women healthcare drugs, including two approved drugs Vyleesi & Intrarosa for libido & to treat pain in post-menopausal women respectively plus two sexual health drugs, with the focus to lower their operating expenses

35. Arena

• Arena completed a WW license agreement with United Therapeutics for its Ralinepag.
• Arena received $1.2B including $800M up front, up to $400M in milestone, and royalties on sales while United received exclusive WW rights to develop, manufacture and commercialize Arena's Ralinepag 
• Ralinepag is a P-III candidate next-generation candidate oral, selective and potent prostacyclin receptor agonist targeted for pulmonary arterial hypertension (PAH)

36. Galapagos

• In Jul 2019, Galapagos collaborated with Gilead and gained rights for filgotinib outside the EU and will co-promote the product in EU. Galapagos to promote filgotinib for RA in France, Italy,and Spain and further in the UK and Germany for Ulcerative Colitis
• Gilead and Galapagos will share the global development cost for filgotinib equally and 80 & 20 costs spilt respectively. Galapagos will receive $1.27B milestones and tiered royalties ranging from 20-30% payable in territories outside of Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain, and the UK
• Filgotinib is an oral, selective JAK1 inhibitor and is currently evaluated in P-III SELECTION trial for UC, and P-II 1205 trial for IPF with expected results in 2020. The company expects for WW commercialization for the five major filgotinib-targeted indications RA, CD, UC, AS, and PsA 

37. Idera Pharmaceuticals

• In Sep 2019, Idera collaborated with AbbVie to evaluate the combination of ABBV-368 + tilsotolimod, ABBV-368 + tilsotolimod and nab-paclitaxel, ABBV-368 + tilsotolimod, nab-paclitaxel + ABBV-181 in with recurrent or metastatic head and neck squamous cell carcinoma (HNSCC).
• The P-I study will be conducted by AbbVie evaluating the safety, tolerability, PK and preliminary efficacy of combinations while Idera to supply tilsotolimod
• ABBV-368 is an OX40 agonist mAb, targeted for solid tumors in P-I trial. ABBV-181 is an anti-PD1 mAb, targeted for solid tumors and hematologic malignancies

38. Rigel

• Rigel also received $20M on EMA approval of fostamatinib in chronic ITP. In Jan 2019, Grifols signed an exclusive license and supply agreement with Rigel to commercialize TAVALISSE (fostamatinib disodium hexahydrate) in all potential indications in EU and Turkey
• Rigel received $30M up front and up to $297.5M milestones, plus royalties up to 30% of net sales. Rigel paid $25M to regain all rights to fostamatinib in EU and other territories
• Grifols got rights to develop and commercialize fostamatinib disodium hexahydrate for ITP in the EU and Turkey. Grifols also has an option to terminate the deal with all their rights to ITP, AIHA, and all other indications within six-month. TAVALISSE is a novel SYK inhibitor used for thrombocytopenia in adult patients with chronic ITP

39. AngioDynamic

• In Oct 2019, AngioDynamics acquired Eximo Medical for its Innovative 355nm Laser Atherectomy Technology
• Eximo Medical received $46M up front in cash and with up to $20M related to certain technical and revenue milestones
• Eximo's B-Laser 355nm Laser Technology capable of delivering short, high-powered pulsed-laser energy in 355nm wavelength without compromising the integrity of its fiber optic cables during atherectomy procedures and is intended to treat de novo, re-stenotic and in-stent restenosis (ISR) lesions in infrainguinal arteries of patients with PAD

40. Jounce Therapeutics

• In Jul 2019, Jounce updated its 2016 deal with Celgene for its JTX-8064, an Ab targeting LILRB2 receptor on macrophages
• Jounce to get $50M as a non-refundable