Related Party Transactions

3 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

Related Party Transactions

17. Related Party Transactions

As described in Notes 13 and 14, in July 2021, the Company entered into the 2021 License Agreement with NHSc Pharma Partners, succeeded by NHSc Rx License GmbH (together with Société des Produits Nestlé S.A., their affiliates, and their subsidiaries, “Nestlé”). NHSc Rx License GmbH is an affiliate of one of the Company’s significant stockholders, Société des Produits Nestlé S.A. During the three months ended March 31, 2024 and 2023, the Company recognized $0 and $1,122, respectively, of related party revenue associated with the 2021 License Agreement. As of both March 31, 2024 and December 31, 2023, there was $0 of deferred revenue related to the 2021 License Agreement. As of March 31, 2024 and December 31, 2023, there was $36,211 and $28,053 included in accrued expenses related to the 2021 License Agreement, which represents amounts due to Nestlé pursuant to the 2021 License Agreement. As of March 31, 2024 and December 31, 2023 there was $8,109 and $7,730 of deferred income - related party included on the accompanying condensed consolidated balance sheets, which represents the inventory transferred to Nestlé that Nestlé has not yet sold through to customers or transferred as free goods. The Company recognizes deferred income - related party as collaboration profit upon Nestlé's sale or transfer of such inventory to third parties. During the three months ended March 31, 2024 and 2023, the Company paid Nestlé $0 and $13,419, respectively, for Nestlé’s share of the collaboration losses pursuant to the 2021 License Agreement. During the three months ended March 31, 2024 and 2023, the Company received $8,674 and $0, respectively in payments from Nestlé for the transfer of VOWST to Nestlé. As of March 31, 2024 and December 31, 2023, there is $7,418 and $8,674 in Collaboration receivable - related party due from Nestlé pursuant to the 2021 License Agreement.

As described in Note 13, Revenue from Contracts with Customers, in January 2016, the Company entered into the 2016 License Agreement with Nestec, Ltd, succeeded by Société des Produits Nestlé S.A. for the development and commercialization of certain product candidates in development for the treatment and management of CDI and IBD, including UC and Crohn’s disease. Société des Produits Nestlé S.A. is one of the Company’s significant stockholders. During the three months ended March 31, 2024 and 2023, the Company recognized $0 and ($1,644), respectively, of related party revenue associated with the 2016 License Agreement. As of March 31, 2024 and December 31, 2023, there was $95,364 and $95,364 of deferred revenue related to the 2016 License Agreement, which is classified as non-current in the condensed consolidated balance sheets. The Company did not make any payment to or receive any payments from Nestlé during the three months ended March 31, 2024 and 2023 pursuant to the 2016 License Agreement. There is no amount due from Nestlé pursuant to the 2016 License Agreement as of March 31, 2024 or December 31, 2023.