Collaboration, License, Co-Promotion and Other Commercial Agreements (Tables)

3 Months Ended

Mar. 31, 2017

Table Text Blocks

Schedule of revenue attributable to transactions from collaboration and license arrangements

The following table provides amounts included in the Company’s condensed consolidated statements of operations as collaborative arrangements revenue attributable to transactions from these arrangements (in thousands):

	Three Months Ended
	March 31,
	2017		2016
Linaclotide Agreements:
Allergan (North America)	$	49,951	$	49,973
Allergan (Europe and other)(1)		109		83
AstraZeneca (China, Hong Kong and Macau)		208		130
Astellas (Japan)		12		14,680
Co-Promotion Agreements:
Exact Sciences (Cologuard) (2)		1,140		719
Allergan (VIBERZI)		457		457
Total collaborative arrangements revenue	$	51,877	$	66,042

(1) In October 2015, Almirall, S.A. (“Almirall”) transferred its exclusive license to develop and commercialize linaclotide in Europe to Allergan. In January 2017, the Company and Allergan expanded the license to cover the Allergan License Territory.  For the three months ended March 31, 2016, collaborative arrangements revenue includes an insignificant amount of revenue from Almirall.

In August 2016, the Company terminated the Cologuard Co-Promotion Agreement. Under the terms of the agreement, the Company will continue to receive royalty payments through July 2017.

Allergan

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Schedule of revenue attributable to transactions from collaboration and license arrangements

The Company recognized collaborative arrangements revenue from the Allergan collaboration agreement for North America during the three months ended March 31, 2017 and 2016 as follows (in thousands):

	Three Months Ended
	March 31,
	2017		2016
Collaborative arrangements revenue related to sales of LINZESS in the U.S.	$	49,452	$	46,647
Sale of API		—		3,017
Royalty revenue		499		309
Total collaborative arrangements revenue	$	49,951	$	49,973

Schedule of amount recorded by the Company for share of net loss related to collaborative arrangement

The following table presents the amounts recorded by the Company for commercial efforts related to LINZESS in the U.S. in the three months ended March 31, 2017 and 2016 (in thousands):

	Three Months Ended
	March 31,
	2017		2016
Collaborative arrangements revenue related to sales of LINZESS in the U.S.(1)(2)	$	49,452	$	46,647
Selling, general and administrative costs incurred by the Company(1)		(11,109)		(9,153)
The Company’s share of net profit	$	38,343	$	37,494

(1) Includes only collaborative arrangement revenue or selling, general and administrative costs attributable to the cost-sharing arrangement with Allergan.

(2) Certain of the unfavorable adjustments to the Company’s share of the LINZESS net profits were reduced or eliminated in connection with the co-promotion activities under the Company’s agreement with Allergan to co-promote VIBERZI in the U.S., as described below in Co-Promotion Agreement with Allergan for VIBERZI.