Related Party Transactions

9 Months Ended

Sep. 30, 2013

Related Party Transactions

6. Related Party Transactions

On January 6, 2011, the Company entered into an Exclusive Channel Partner Agreement (the “Channel Agreement”) with Intrexon (see Note 7 for additional disclosure relating to the Channel Agreement). Our director, Randall J. Kirk, is the CEO, a director, and the largest stockholder of Intrexon. During the nine months ended September 30, 2012, the Company paid Intrexon approximately $11.4 million, of which $4.8 million was for services already incurred and the remaining $6.6 million expected to be incurred within a year. This amount was included as part of prepaid expenses and other current assets on the balance sheet as of September 30, 2012. During the nine months ended September 30, 2013, the Company was billed $5.9 million for services performed by Intrexon, of which $4.9 million was applied to the prepaid expenses balance and the rest was accrued. As of September 30, 2013, the prepaid balance in other current assets on the accompanying balance sheet had been reduced to $0.

On January 25, 2012, Intrexon purchased 1,923,075 shares of common stock in the Company’s public offering (see Note 9).

On November 7, 2012, the Company issued 3,636,926 shares of common stock to Intrexon under the terms of its Stock Purchase Agreement with Intrexon dated January 6, 2011 (see Note 9).