Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

We conduct product research and development programs through a combination of internal and collaborative programs that include, among others, arrangements with universities, contract research organizations and clinical research sites. We have contractual arrangements with these organizations; however, these contracts are cancelable on 30 days’ notice and our obligations under these contracts are largely based on services performed with the exception of our contract manufacturers. Non-cancelable purchase commitments with contract manufacturing organizations exclusive of the commercial supply agreement disclosed in footnote 8 amount to $25.3 million and $2.6 million in services to be performed in 2015 and 2016, respectively.

Facility Leases

We lease our corporate, laboratory and other facilities under an operating lease, which was extended in May 2010 through March 31, 2015. The 2010 lease amendment provided for tenant improvement allowances of $3.2 million, which are amortized as a reduction to rent expense on a straight-line basis over the lease term. In March 2014, we signed an amendment to the 2010 lease agreement for additional space and to extend the lease term through March 2020. The 2014 lease amendment provided for a tenant improvement allowance of $1.8 million, which is being amortized as a reduction to rent expense on a straight-line basis over the lease term and an early termination right effective March 2018 with nine months advance notice. The facility lease agreement, as amended, contains scheduled rent increases over the lease term. Under the 2014 lease amendment, we have an option to extend the lease for an additional three-year term. The related rent expense for this lease is calculated on a straight-line basis, with the difference recorded as deferred rent.

At December 31, 2014, our future minimum commitments under our non-cancelable operating leases were as follows (in thousands):

Year ending December 31:
2015	$	1,769
2016		2,070
2017		2,134
2018		2,200
2019		2,267
Thereafter		571
Total	$	11,011

Rent expense was $1.2 million, $803,000 and $800,000 for the years ended December 31, 2014, 2013 and 2012, respectively.

Guarantees and Indemnifications

We indemnify each of our officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at our request in such capacity, as permitted under Delaware law and in accordance with our certificate of incorporation and bylaws. The term of the indemnification period lasts as long as an officer or director may be subject to any proceeding arising out of acts or omissions of such officer or director in such capacity.

The maximum amount of potential future indemnification is unlimited; however, we currently hold director and officer liability insurance. This insurance allows the transfer of risk associated with our exposure and may enable us to recover a portion of any future amounts paid. We believe that the fair value of these indemnification obligations is minimal. Accordingly, we have not recognized any liabilities relating to these obligations for any period presented.