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Collaboration Agreement
3 Months Ended
Mar. 31, 2013
Collaboration Agreement

2. Collaboration Agreement

Astellas Pharma Inc.

In December 2005, the Company entered into an agreement pursuant to which it licensed to Astellas Pharma Inc., exclusive rights to develop and commercialize gabapentin enacarbil in Japan, Korea, the Philippines, Indonesia, Thailand and Taiwan. In the quarters ended March 31, 2013 and 2012, the Company recognized revenue of $379,000, representing amortization of the up-front license payment under this agreement. In the three months ended March 31, 2012, the Company recognized a $10,000,000 milestone payment in connection with the approval of Regnite (gabapentin enacarbil) Extended-Release Tablets in Japan. In the three months ended March 31, 2013, the Company recognized $80,000 in royalty revenue based on the fourth quarter 2012 net sales of Regnite in Japan. No royalty revenue was received in the three months ended March 31, 2012. As of March 31, 2013, the Company had recognized an aggregate of $51,300,000 of revenue pursuant to this agreement. At March 31, 2013, $13,889,000 of revenue was deferred under this agreement, of which $1,515,000 was classified within current liabilities and the remaining $12,374,000 was recorded as a noncurrent liability.