Subsequent Events

12 Months Ended

Dec. 31, 2018

SUBSEQUENT EVENTS

Subsequent Events

Note 16. Subsequent Events

Decision on Calcitriol (Active Vitamin D) Injection

During the first quarter of 2019, following a strategic review of Calcitriol, including pricing, commercial distribution and marketing, manufacturing efficiencies and capacity (including potential capital investment), we determined commercialization of Calcitriol in the U.S. would not be viable at this time. The decision was based, in part, on the fact that prevailing market prices for similar Vitamin D products are lower than our cost to produce Calcitriol on a dose-equivalent basis, and as a result it would be difficult for us to market Calcitriol profitably. As a result of this decision, we recorded an inventory reserve of $0.7 million for the fourth quarter of 2018, reflecting the remainder of our Calcitriol inventory. We are continuing to evaluate the potential commercialization of Calcitriol in China with Wanbang, including the market opportunity and regulatory pathway.

Amendment to DaVita Concentrates Agreement

On March 1, 2019, we entered into an amendment to our Products Purchase Agreement with DaVita. Pursuant to the terms of the amendment, the term of the contract was extended from March 31, 2019 to June 30, 2019. We are currently negotiating a long-term contract with DaVita for our concentrates products, and we expect to reach an agreement on such contract prior to the expiration of the Products Purchase Agreement, as amended.