Question-and-Answer Session
Operator
(Operator instructions). We'll take our first question from Dave Windley with Jefferies.
David Windley – Jefferies & Co.
Hi, good morning. Thanks for taking the questions and congratulations on managing through tough environment here. Wondering on your BMS and access fee amortization and funded research, I guess, that early part of the program that you just described. As that goes away how much revenue does that represent? And as you look forward into 2009, are you in discussions with other parties that might come in to a deal like that that would help to replace that revenue?
Mark Frost
Sure, Dave, I'll take a shot at it. From a revenue contribution standpoint, it's not a material amount. It's probably 2% or 3%. From a margin standpoint, there is a bigger benefit than that, so it's more margin impact that we need to manage and are worrying about. So, revenue, we're not really worried that we're going to be able to replace that. As Tom mentioned, we're pretty encouraged, particularly, in a couple of our segments that will replace that revenue over time.
From a licensing standpoint, we do have interest in a number of our compounds and are hopeful that at some point, in the next three to nine months, we will get some place and get to a deal which will help us replace it. We do have continued interest in our natural product collaborations and are hopeful that we'll get some new deals in the next year, but there is no guarantees at this point. And we'll have a lot more color on that, Dave, when we get to our next call in the beginning of February.
David Windley – Jefferies & Co.
Right. Again a follow up on that. On licensing deals would you expect that those would include an upfront license fee as well as them retaining your scientists to help with development of the licensed compounds or is that not necessarily part of a potential deal?
Thomas D'Ambra
Let me jump in, Dave. It depends on the program. We've stated always that our intent is to partner all of our programs so, we continue to be out there in the marketplace. And, as Mark mentioned, there is some interest in some of the programs, that doesn't mean that we'll be able to partner any. I just want to reiterate some of the comments that Mark made. When we give our guidance next year we will not put a partnering deal in our guidance because there is no guarantee. But we're optimistic that sometime next year or shortly after that some of these programs will be at a stage where we can do that. In terms of many of the programs they could be structured similar to the BMS deal. The compound that's – the cancer compound that's in clinical trials that might just be for that compound.
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