Research and Development Arrangements and Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Research and Development Arrangements and Related Party Transactions

3. Research and development arrangements and related party transactions:

In June 2012, the Company entered into an agreement to terminate its license agreement with the University of Medicine and Dentistry of New Jersey (“UMDNJ”) and certain sublicenses related to the Bioral^® drug delivery technology previously developed by the Company under such license. Under this agreement, the Company agreed to assign to UMDNJ its know-how to the Bioral^® technology. All sublicenses related to the Bioral^® technology have been formally terminated, and the Company has assigned to UMDNJ its know-how and patent rights to the Bioral^® technology in consideration of 10% of future potential revenues collected by UMDNJ for commercialization of Bioral^® formulated Amphotericin B products and 3.5% for non-Bioral^® formulated Amphotericin B products which utilize such patent rights and know-how. We have not earned any revenue from UMDNJ on commercialization of the aforementioned products during 2013 or 2012.

Previously, the Company rented office space for accounting and administrative staff in Tampa, Florida from Accentia Biopharmaceuticals, Inc., a former related party (“Accentia”), and shared one employee, with personnel costs paid based on the approximate time spent on Company activities. Rent payments to Accentia were $0.03 million for year ended 2013 and $0.06 million for years 2012 and 2011, respectively, and are included in general and administrative costs, related party.

In 2009, as part of a settlement arrangement, the Company received a warrant from Accentia, a former related party, to purchase two million shares of common stock of Biovest International, Inc. (“Biovest”) held by Accentia. Biovest was a majority-owned subsidiary of Accentia. During the year ended December 31, 2013, Biovest filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court. On July 9, 2013, the plan became effective, which canceled all outstanding common stock and warrants. As a result, the warrants had no value as of December 31, 2013 and the reduction of value is included in derivative gain (loss) in the consolidated statement of operations for the year ended December 31, 2013.