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Significant Collaborative Research and Development Agreements
9 Months Ended
Sep. 30, 2012
Significant Collaborative Research and Development Agreements [Abstract]  
Significant Collaborative Research and Development Agreements

7. Significant Collaborative Research and Development Agreements

Novus International, Inc

On June 23, 2011, the Company entered into a collaboration agreement with Novus International Inc. (“Novus”) to develop, manufacture and commercialize a suite of new enzyme products from the Company’s late stage product pipeline in the animal health and nutrition product line (collectively referred to as “animal feed enzymes”). During the first quarter 2012, the Company completed one of the identified deliverables in the agreement related to the delivery of one of the licenses required to produce the final end products and recognized $2.9 million related to the relative selling price of the delivered license. Collaborative revenue for the three and nine months ended September 30, 2012 related to the Novus agreement equaled $0.2 and $3.5 million, including $2.9 million related to the relative selling price of the delivered license. There was $0.3 million in deferred revenue related to the Novus agreement as of September 30, 2012.

In accordance with the agreement, the Company will receive an additional cash payment of $2.5 million upon the earlier of (i) first commercial sale or (ii) first regulatory submission. This achievement is deemed to add value to the product candidate and will be based on past performance performed by the Company, and as such the amount was concluded to be a substantive milestone to be recognized upon achievement.