Zai Lab License Agreement

9 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Zai Lab License Agreement

NOTE 9: ZAI LAB LICENSE AGREEMENT

On September 10, 2018, the Company entered into a License and Collaboration Agreement (the “Zai Agreement”) with Zai Lab (Shanghai) Co., Ltd. (“Zai”).  Under the Zai Agreement, the Company granted Zai exclusive rights to commercialize Tumor Treating Fields in the field of oncology in China, Hong Kong, Macau and Taiwan (the “Territory”).  The Zai Agreement also established a development partnership for Tumor Treating Fields in multiple solid tumor indications.  In partial consideration for the license grant to Zai for the Territory, Zai will pay the Company a non-refundable, up-front license fee in the amount of $15 million, as well as certain development, regulatory and commercial milestone payments up to $78 million, and tiered royalties at percentage rates from 10 up to the mid-teens on the net sales of the licensed products in the Territory.  The Company expects to receive the $15 million up-front license fee in the fourth quarter 2018.

Zai will purchase licensed products for commercial use exclusively from the Company at the Company’s fully burdened manufacturing cost.