Research Collaboration and License Agreement

12 Months Ended

Dec. 31, 2019

Research Collaboration and License Agreement

Research Collaboration and License Agreement

Research Collaboration and License Agreement

Note 6.    Research Collaboration and License Agreement

In October 2013, the Company’s former collaboration partner decided to abandon a collaboration program with the Company and, pursuant to the terms of the agreement between the Company and the former collaboration partner, the Company elected to assume responsibility for the development and commercialization of the product. Upon the former collaboration partner’s abandonment, it assigned to the Company certain intellectual property that relates to the products arising from the collaboration. The Company has the right, but not the obligation, to further develop and commercialize the product and, if the Company successfully develops and commercializes PTG‑300 without a partner, the former collaboration partner could be eligible to receive up to an additional aggregate of $128.0 million for the achievement of certain development, regulatory and sales milestone events. Milestone payments to collaboration partners are recorded as research and development expenses in the period that the expense is incurred. No research and development expense was recorded under this agreement for the year ended December 31, 2019. For the years ended December 31, 2018 and 2017, the Company recorded research and development expense of $500,000 and $250,000, respectively, under this agreement.