"If Pennsaid 2% is approved by the FDA, Nuvo will be entitled to receive royalties and escalating sales milestone payments."

I don't read that the same way as you.  If you take it to mean that they aren't eligible for escalating sales milestone payments right now, then you must also take it to mean they aren't eligible to receive royalties right now.  I think for clarity's sake, they could stand to type the word "continued" somewhere in that sentence.