License and Asset Purchase Agreements

9 Months Ended

Sep. 30, 2022

License and Asset Purchase Agreements [Member]

License and Asset Purchase Agreements

4. License and Asset Purchase Agreements

In prior periods, we entered into out-licensing and asset purchase agreements with Berlin-Chemie AG, an affiliate of the Menarini Group (“Menarini”), Biogen MA Inc. (“Biogen”), Antengene Therapeutics Limited (“Antengene”), and FORUS Therapeutics Inc., all of which are accounted for within the scope of Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). For further details on the terms and accounting treatment considerations for these contracts, please refer to Note 11, “License and Asset Purchase Agreements,” to our consolidated financial statements contained in Item 8 of our Annual Report.

On June 7, 2022, we received written notice from Biogen that Biogen had elected to terminate the Asset Purchase Agreement entered into between the Company and Biogen dated January 24, 2018, as amended (the “Biogen Agreement”). As a result of the termination, we are not entitled to receive any milestone payments or royalties under the Biogen Agreement, although we have specified rights relating to the purchased assets upon the termination of the Biogen Agreement, which we are evaluating.

The following table presents information about our license and other revenue (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Antengene	$	1,532	$	9,951	$	11,533	$	10,544
Menarini		1,618		—		15,235		—
Other		986		1,015		7,407		4,373
Total license and other revenue	$	4,136	$	10,966	$	34,175	$	14,917

During the three months ended September 30, 2022, we recognized $1.4 million of royalty revenue pursuant to our license agreement with Antengene (the “Antengene Agreement”), $1.4 million of revenue for the reimbursement of development related expenses from Menarini, and $1.0 million of other royalty revenue.

During the three months ended September 30, 2021, we recognized $9.8 million of milestone-related revenue and $0.2 million of royalty revenue pursuant to the Antengene Agreement. We also recognized $1.0 million of other royalty revenue.

During the nine months ended September 30, 2022, we recognized $7.8 million of milestone-related revenue, $2.8 million of royalty revenue, and $0.9 million of other reimbursement revenue pursuant to the Antengene Agreement. We also recognized $15.0 million of revenue for the reimbursement of development related expenses from Menarini, $5.1 million of other royalty revenue and $2.3 million of other milestone-related revenue.

During the nine months ended September 30, 2021, we recognized $10.0 million of milestone-related revenue and $0.5 million of royalty revenue pursuant to the Antengene Agreement. We also recognized $2.9 million of other royalty revenue and $1.5 million of other milestone-related revenue.

At September 30, 2022, license and other revenue of $29.7 million was included in other current assets. At December 31, 2021, license and other revenue of $1.4 million and $19.5 million were included in other current assets and other assets, respectively.