Related Party Transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

17. Related Party Transactions

Avista, the Company’s majority shareholder, provided certain advisory services to the Company pursuant to an advisory services and monitoring agreement. The Company was required to pay an annual fee of $1.0 million and other reasonable and customary advisory fees, as applicable, paid on a quarterly basis. The initial term of the agreement was seven years. On June 25, 2015, the Company exercised its right to terminate its advisory services and monitoring agreement with Avista. In connection with such termination, the Company has paid Avista Capital Holdings, L.P. an aggregate termination fee of $6.5 million, which was included in general and administrative expenses in the condensed consolidated statement of operations during the quarter ended June 30, 2015. During the three and six months ended June 30, 2016, the Company did not incur any costs associated with this agreement as compared to $6.8 million and $7.0 million, respectively, for the prior year comparative periods. At June 30, 2016 and December 31, 2015, there were no amounts outstanding.

In the first quarter of 2016, the Company entered into a services agreement with INC Research, LLC, or INC, to provide pharmacovigilance services. Avista and certain of its affiliates are principal owners of both INC and the Company. The agreement has a term of three years. During the three and six months ended June 30, 2016, the Company incurred costs associated with this agreement of approximately $0.3 million and $0.5 million, respectively. At June 30, 2016, $0.1 million was included in accrued expenses and other liabilities.

The Company purchases inventory supplies from VWR Scientific, or VWR. Avista and certain of its affiliates are principal owners of both VWR and the Company. During each of the three and six months ended June 30, 2016, the Company made purchases of $0.1 million and $0.2 million respectively, as compared to $44,000 and $0.1 million for the prior year comparative periods. At June 30, 2016 and December 31, 2015, $6,000 and $10,000, respectively, was included in accounts payable and accrued expenses.