Question-and-Answer Session
Operator
Yes sir. Thank you. The question and answer session will begin at this time. (Operator instructions) Mr. Snyder, our first question comes from the line of Andrew Healey with Deutsche Bank. Go ahead.
Marc Greenberg – Deutsche Bank
Hi, thanks guys. It's Marc Greenberg. Good morning.
Kent Snyder
Hi Marc.
Marc Greenberg – Deutsche Bank
A few questions here. First, John, just housekeeping, the six months run rate on revenues $9.6 million and you're talking about $20 million to $24 million revenue guidance for the full year. How much of that, if I bridge that $10 million plus or so in the back half, how much of that to get to the low end of guidance would come from incremental new collaborations? In other words, what are we looking for on the top line in dollar terms to make the low end of guidance?
John Poyhonen
So Marc, there are a variety of different sources that can contribute to that revenue line. One would be increasing the R&D funding from existing collaborations or payment of outside services. The other is milestone payments, and as you point out, the third is actually our new business development activities. So while we're not prepared to talk about specifically what portion of that would be required from business development activities, based on where we are in discussions as well as other sources of increased revenue, we feel comfortable with the guidance at this time.
Marc Greenberg – Deutsche Bank
Great. Thank you. Kent with regards to the – you've talked about the fact that the EU approval around savory has been a bit frustrating. I'm sure you're disappointed with the delay. Wondering a couple of things specifically with regards to potential new collaborations and ongoing conversations with contacts. The fact that the royalty stream there is moving a little bit slower, has that caused you to think differently about how you bring on new deals you know sort of more cash upfront given that some of these delays are taking a bit longer?
Kent Snyder
Well Marc, I think that depending on the deal, the particular program and kind of the state of what we deliver to a new collaborator, if it's a finished enhancer or close to finished enhancer that I think we would expect higher upfront payments without sacrificing anything on the royalty end. I think that we've always looked at the European Union as coming on later in terms of the approval process compared to the U.S. and other countries and obviously with the current situation that has not changed. But I don't believe that situation fundamentally has impacted the way we look at new arrangements. I think it really comes down to what's the stage of the program that we're offering to the new collaborator. If it's something that's very, very early on then I think that the ability to collect the upfront payment is less than if we're delivering something that's through the regulatory process or close to being through the regulatory process. So at some point we think that the EU situation is going to be resolved and get back on track. It's just unfortunate that the situation occurred during the time that we were seeking approval for the savory flavor ingredients and that's been the primary impact.
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