COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Contingencies

From time to time the Company is involved in legal actions arising in the normal course of its business. The process of resolving matters through litigation or other means is inherently uncertain and it is possible that an unfavorable resolution of these matters could adversely affect the Company, its results of operations, financial condition and cash flows. The Company’s general practice is to expense legal fees as services are rendered in connection with legal matters, and to accrue for liabilities when losses are probable and reasonably estimable.

Contingent Payments

As of September 30, 2019, the Company was subject to contingent payments totaling approximately $376.9 million upon achievement of certain development and regulatory activities and commercial sales and licensing milestones if they occur before certain dates in the future. Of this amount, $65.5 million relates to the acquisition of certain rights and other assets with respect to Kuvan and Palynziq from a third party and $239.7 million relates to programs that are no longer being developed.

As of September 30, 2019, the Company recorded a total of $69.1 million of contingent liabilities, of which $20.2 million was short-term. See Note 9 to these Condensed Consolidated Financial Statements for further information regarding the fair value of the Company’s contingent consideration.

Other Commitments

In the normal course of business, the Company enters into various firm purchase commitments primarily related to active pharmaceutical ingredients and certain other inventory-related items. As of September 30, 2019, such commitments and other minimum contractual obligations for clinical and post-marketing services were estimated at approximately $131.6 million.