HCCOGS definition
HCCOGS means, for each Drug Substance Batch, (X) the actual direct costs to HCC of manufacturing such Drug Substance Batch, including depreciation but excluding the cost of raw materials, packaging materials and waste disposal, all in accordance with United States Generally Accepted Accounting Principles and the normal accounting practices for all other pharmaceutical products manufactured in the applicable facility (the "Direct Costs") plus (Y) an amount equal to [ * ] of the Direct Costs for such Drug Substance Batch (the "Estimated Overhead"), plus (Z) the cost of raw materials, packaging materials and waste disposal, as applicable. The Estimated Overhead is intended by the Parties to compensate HCCOGS for any indirect and overhead costs allocable to the manufacture of Drug Substance and therefore the Direct Costs ((X) in the preceding sentence) shall not include any indirect costs or overhead. For purposes of this Agreement, if the HCCOGS is to be calculated for some quantity of Drug Substance (e.g., a Shipment Lot) that is less than the full Drug Substance Batch from which such quantity of Drug Substance was derived, the HCCOGS for such lesser quantity of Drug Substance shall be calculated by multiplying the HCCOGS for such full Drug Substance Batch by the ratio of the total weight (in kilograms) of such lesser quantity of Drug Substance to the total weight (in kilograms) of the full Drug Substance Batch.
Examples of HCCOGS in a sentence
For the purpose of computing Net Product Sales for Products sold in a currency other than United States Dollars and for purposes of determining HCCOGS in a currency other than United States Dollars, such currency shall be converted into United States Dollars in accordance with the applicable Party's customary and usual conversion procedures, consistently applied.