Axon is an early-stage biotech research company with a single product, AX484, in its pipeline. Recently, Axon successfully received IND status for AX484, and has been preparing to test the new compound in phase 1 clinical trials. Axon has neither the capital nor the clinical trial expertise to navigate AX484 through the regulatory approval process, and is looking for a partner to help fund the costs of the trial and serve in an advisory role. Earlier this year, the general partners of BioLab Ventures (BLV) met with the management team of Axon to negotiate the terms of a series A round of financing (Axon had initially been financed by the founders, and was currently renting space in a shared laboratory facility). A number of important questions needed to be addressed including the current "pre-money" valuation of Axon, the amount of equity that would be acquired by BLV, and the amount BLV would pay to acquire that equity. Problem 3 0.0/1.0 point (graded) After commercial launch, Axon's management team estimates that cost of goods sold (COGS) and sales, general, and administrative costs (SG&A) will be 25% and 40% of revenues, respectively. Under these assumptions, what would be the NPV of future profits at the moment of commercial launch? Assume you can ignore other expenses. (Note: Your answer should be expressed in units of millions of dollars.) $ million Axon is an early-stage biotech research company with a single product, AX484, in its pipeline. Recently, Axon successfully received IND status for AX484, and has been preparing to test the new compound in phase 1 clinical trials. Axon has neither the capital nor the clinical trial expertise to navigate AX484 through the regulatory approval process, and is looking for a partner to help fund the costs of the trial and serve in an advisory role. Earlier this year, the general partners of BioLab Ventures (BLV) met with the management team of Axon to negotiate the terms of a series A round of financing (Axon had initially been financed by the founders, and was currently renting space in a shared laboratory facility). A number of important questions needed to be addressed including the current "pre-money" valuation of Axon, the amount of equity that would be acquired by BLV, and the amount BLV would pay to acquire that equity. Problem 3 0.0/1.0 point (graded) After commercial launch, Axon's management team estimates that cost of goods sold (COGS) and sales, general, and administrative costs (SG&A) will be 25% and 40% of revenues, respectively. Under these assumptions, what would be the NPV of future profits at the moment of commercial launch? Assume you can ignore other expenses. (Note: Your answer should be expressed in units of millions of dollars.) $ million