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Subsequent Events
12 Months Ended
Dec. 31, 2017
Subsequent Events  
Subsequent Events

15.    Subsequent Events

 

In January 2018, the Company amended its existing agreement with an insurance carrier, which provides the Company access to contact information of certain referring and ordering physicians and includes the Company as a member of its Preferred Provider Network. The Company will pay a total consideration of approximately $2.0 million over a two-year period in exchange such benefits.

 

In February 2018, the Company amended its existing agreement with one of its laboratory partners to extend the original term of the agreement for two additional years, provided that the agreement is not canceled by the Company on December 31, 2018. The amended agreement expires on December 31, 2020 and requires material commitments from the Company to purchase certain number of tests annually.

In March 2018, the Company reached settlement with the United States Department of Justice related to reimbursement related claims. This settlement agreement requires the Company to pay a total of approximately $11.4 million, of which approximately $5.6 million including applicable interest was secured by a letter of credit, will be paid in four equal installments, subject to the Company’s option to prepay without penalty. See Legal Proceedings under Note 6 for more detail.

 

In March 2018, the Company entered into a Distribution Agreement with Qiagen to develop, manufacture, distribute and commercialize NGS-based genetic testing assays for clinical use based on the Company’s proprietary Panorama NIPT technology. According to the agreement, the Company will receive a total of $40.0 million before March 31, 2018. Additionally, the Company is entitled to potential milestone payments totaling $10.0 million from Qiagen upon the achievement of certain volume, regulatory and commercial milestones. The Distribution Agreement has a term of 10 years and expires in March 2028.