SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2013

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

13. SUBSEQUENT EVENTS

On July 15, 2013, the Company and Swedish Orphan Biovitrum AB (publ) (“Sobi”) announced that they had entered into a collaboration agreement (the “Sobi Agreement”). Under the Sobi Agreement, Sobi was granted the right to develop and commercialize XIAPEX for the treatment in humans of Peyronie’s Disease, if approved, and Dupuytren’s Contracture in 28 European Union member countries, Switzerland, Norway, Iceland, 18 Central Eastern Europe/Commonwealth of Independent countries, including Russia and Turkey, and 22 Middle Eastern & North African countries.  Under the terms of the Sobi Agreement, the Company expects to receive significant tiered royalties within the range of 55-65%, 50-60% and 45-55% based on sales of XIAPEX in Sobi’s territories, which will also cover payment for product supply.  The tiered royalty percentages will decrease by approximately 10% upon the occurrence of certain manufacturing milestones or July 1, 2016, whichever is earlier.  Additionally, Sobi could make up to $40 million in potential sales milestone payments to the Company. For a further description of the Sobi Agreement, please see the Company’s Current Report on Form 8-K, filed with the SEC on July 15, 2013.

On July 31, 2013, the Company and GlaxoSmithKline LLC (‘GSK”) agreed to mutually terminate their co-promotion agreement for the sale of Testim. As a result, the Company reversed to income for the three and six months ended June 30, 2013 the $1,015 accrual recorded in 2012 for post-expiration obligations to GSK.