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Janssen will pay Sepracor royalties on product sales beginning upon launch and royalties will escalate upon achievement of sales volume milestones.
The term of this agreement is 7 years beginning upon the opening date.
The Company estimates the revised contract will generate a run-rate of more than $50 million in annual savings, which will be realized in cash beginning upon the Company's emergence from Chapter 11 pursuant to a plan of reorganization.