COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2020

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 or 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 June 30, 2020, the Company was subject to contingent payments totaling approximately $616.6 million upon achievement of certain development and regulatory activities and commercial sales milestones, if they occur

before certain dates in the future. Of this amount, $235.0 million related to an early stage development program licensed from a third party in the second quarter of 2020, $67.4 million related to the acquisition of certain rights and other assets with respect to Kuvan and Palynziq from a third party and $244.0 million related to programs that are no longer being developed.

As of June 30, 2020, the Company recorded a total of $50.2 million of contingent liabilities. 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, certain inventory-related items and certain third-party R&D services. As of June 30, 2020, such commitments and other minimum contractual obligations for clinical and post-marketing services were estimated at approximately $115.7 million.