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Related Party Transactions
3 Months Ended
Mar. 31, 2018
Related Party Transaction, Due from (to) Related Party [Abstract]  
Related Party Transactions
Related Party Transactions
Exela PharmSci, Inc.
We entered into a commercialization agreement with Exela in 2007. Under the license agreement, as amended, we and Exela cross-licensed certain technology relating to the manufacture of argatroban, an API, in exchange for rights to certain sublicensing fees or development payments and profit sharing. The revenue sharing arrangement was terminated in December 2017.
Thomas R. Baruch, one of our directors, serves on the board of directors of Exela, and is a retired general partner in Presidio Partners 2007, LP which owns over 10% of Exela’s outstanding capital stock. As such, Mr. Baruch has an indirect pecuniary interest in the shares of Exela held by Presidio Partners 2007, L.P.
We recognized nil and 0.4 million revenues for the three months ended March 31, 2018 and 2017, respectively, shown in the unaudited condensed consolidated statement of operations as research and development revenue. We had $1.1 million and $1.6 million of receivables from Exela at March 31, 2018 and December 31, 2017, respectively.
AstraZeneca PLC
Pam P. Cheng, a member of our board of directors, joined AstraZeneca PLC as Executive Vice President, Operations and Information Technology in June 2015. We sell biocatalyst products to AstraZeneca PLC, to Alfa Aesar, which is a purchasing agent of AstraZeneca PLC, and also to Asymchem Life Science Co, Ltd, which is a contract manufacturer for AstraZeneca PLC.
In the three months ended March 31, 2018 and 2017, we recognized $0.3 million and de minimis revenue from AstraZeneca PLC, respectively. We recognized de minimis revenue and nil from Asymchem and did not recognize any revenue from Alfa Aesar in the three months ended March 31, 2018 and 2017, respectively. At March 31, 2018 and December 31, 2017, we had zero and $86 thousand accounts receivables from AstraZeneca, PLC, zero and $0.4 million of accounts receivables from Alfa Aesar, and $16 thousand and none of accounts receivables from Asymchem, respectively.
In the three months ended March 31, 2018, we started performing enzyme screening work for AstraZeneca PLC. This service is provided free to AstraZeneca and is related to an option for additional services that AstraZeneca may exercise and pay for at a later date. AstraZeneca has not yet exercised the option and the option has not yet expired as of March 31, 2018. Our work is expected to be completed in the second quarter of 2018. During the three months ended March 31, 2018, we did not recognize revenue for the work we have performed to date because AstraZeneca has not yet exercised their option. The commercial value of the screening work is estimated to be $56 thousand. Costs for performing the screening work, primarily salaries of research and development personnel, are included in research and development expenses in our unaudited condensed consolidated statements of operations.