Related Party Transactions

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

14. Related Party Transactions

In the ordinary course of business, the Company may purchase materials or supplies from entities that are associated with a party that meets the criteria of a related party of the Company. These transactions are reviewed quarterly and to date have not been material to the Company’s condensed consolidated financial statements.

The Company and AvenCell are parties to the AvenCell LCA and AvenCell Co/Co, as described in Note 7. The Company’s relationship with AvenCell is considered to be as a related party due to the Company’s 33.33% investment in AvenCell being accounted for under the equity method. The Company recognized $5.6 million in revenue related to the AvenCell LCA for each of the three months ended March 31, 2023 and 2022, after eliminating $2.8 million during each of those respective periods in intra-entity profits, which will be deferred and recognized if and when AvenCell commercializes a product with the Company’s license or abandons the related project. Until such time, this revenue is indefinitely deferred and excluded from the results of operations of the Company. The Company recognized $0.7 million and $0.2 million in contra-revenue in the three months ended March 31, 2023 and 2022, respectively, related to the AvenCell Co/Co agreement. As of March 31, 2023 the Company had deferred revenue of $11.4 million, all of which is included in current deferred revenue, related to the AvenCell LCA.