Subsequent Event

3 Months Ended

Mar. 31, 2016

Subsequent Events.

Subsequent Events

12. Subsequent Events

On April 5, 2016, the Company entered into separate transactions with Janssen and its affiliate, Johnson & Johnson Innovation — JJDC, Inc., or JJDC, consisting of a collaboration and license agreement with Janssen, or the Collaboration Agreement, and a stock purchase agreement and investor agreement, each with JJDC, or the Stock Purchase Agreement and the Investor Agreement, respectively. 

Under the terms of the Collaboration Agreement, the Company granted Janssen licenses under certain patent rights and know-how relating to niraparib, for prostate cancer worldwide, except for Japan.  The Company retains all rights worldwide to develop and commercialize niraparib other than for prostate cancer. 

The Company received a $35.0 million upfront license fee from Janssen in April 2016.  Assuming successful development and commercialization of niraparib products for prostate cancer, the Company could receive up to an additional $415.0 million in clinical, regulatory and sales milestones as well as tiered, double-digit royalties on aggregate net sales of products in the field of prostate cancer.  Janssen is responsible for conducting and funding all development and commercialization of niraparib for prostate cancer worldwide (excluding Japan), including research, development, manufacturing, regulatory and commercialization activities.

Under the terms of the Stock Purchase Agreement, the Company sold and issued 1,130,198 shares of common stock to JJDC on April 5, 2016 at a price per share of $44.24, for an aggregate purchase price of approximately $50.0 million.  The price per share was equal to the volume weighted average price for the five-day period ending on April 4, 2016.  There were no placement agents used, or any underwriting discounts or commissions paid in connection with the transaction.