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COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

(16) 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 June 30, 2018, the Company is subject to contingent payments totaling approximately $540.4 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, $158.0 million relates to the acquisition of certain rights and other assets with respect to Kuvan and Palynziq from Merck Serono and $53.2 million relates to programs that are no longer being developed.

As of June 30, 2018, the Company has recorded a total of $134.1 million of contingent acquisition consideration on its Condensed Consolidated Balances Sheet. The Company paid $61.6 million of contingent acquisition consideration in April 2018 related to the filing of the European Marketing Authorization Application for Palynziq.

See Note 12 to these Condensed Consolidated Financial Statements for further information regarding the Company’s contingent acquisition 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 inventory related items. As of June 30, 2018, these commitments for the next five years were approximately $62.0 million. The amounts primarily represent minimum purchase requirements for active pharmaceutical ingredients and post-marketing commitments related to the Company’s commercial products.