19.

Subsequent Events

Collaboration with Medivation, Inc. and Astellas Pharma, Inc.

In January 2016, the Company entered into a collaboration agreement with Medivation, Inc. and Astellas Pharma Inc. to pursue the translation of a novel gene expression signature algorithm discovered by Medivation into a companion diagnostic assay using the nCounter Analysis System. Under the terms of the collaboration agreement, the Company will modify its PAM50-based Prosigna Breast Cancer Assay for potential use as a companion diagnostic test for XTANDI (enzalutamide) for triple negative breast cancer. XTANDI is currently approved for the treatment of metastatic castration-resistant prostate cancer.

The modified Prosigna test will be based upon data from a Phase 2 trial conducted by Medivation and Astellas that evaluated enzalutamide in patients with triple negative breast cancer. Under the terms of the collaboration agreement, the Company will be responsible for developing and validating the diagnostic test and, if the parties thereafter determine to proceed, will also be responsible for seeking regulatory approval for and commercializing the test. In January 2016, the Company received $6.0 million upfront for technology access, and is eligible to earn up to $6.0 million in pre-clinical milestones and $10.0 million in development funding, in addition to other potential downstream milestone payments.

Expanded Collaboration with Merck

In February 2016, the Company expanded its collaboration with Merck by entering into a new development collaboration agreement to clinically develop and commercialize a novel diagnostic test, based on an optimized gene expression signature, to predict response to Merck’s anti-PD-1 therapy, KEYTRUDA, in multiple tumor types.

Under the terms of the new collaboration agreement, the Company will be responsible for seeking regulatory approval for and commercialization of the diagnostic test. The Company will receive a $12.0 million upfront technology access fee and development funding and is eligible to receive up to $12.0 million of near-term preclinical milestone payments, and other potential downstream regulatory milestone payments.