KMPH - Milestone Payment Confusion Has Created An Investment Opportunity In KemPharm

• On Thursday, 4/9/2021, KemPharm announced an updated commercialization agreement with its marketing partner, Corium. This was based on a post-approval commercial assessment conducted with GPC, Corium's parent.
• The agreement added increased royalty rates, and $130M in potential sales milestones, with an increase of $7m in regulatory milestones. Total sales and regulatory milestones stand at $590m.
• Critically, the agreement added three new sales milestones tiers at lower levels than the lowest previous tier, and one sales milestone that is higher than the highest tier.
• KemPharm reinvested in Azstarys, rather than book surplus milestone payments immediately. This was taken as a negative by the market - nowadays, the market cannot see further than its nose.
• In this article, I will explain why the amendment is a good thing and why KemPharm stock (KMPH) is a buying opportunity.

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