Subsequent Event

12 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On May 5, 2022, one of the Company’s subsidiaries, MSG, entered into an exclusive license agreement (the “Accord License Agreement”) with Accord Healthcare, Ltd. (“Accord”) and Intas Pharmaceuticals, Ltd., parent entity of Accord, for Accord to commercialize relugolix for the treatment of advanced hormone-sensitive prostate cancer under the trade name ORGOVYX® (relugolix 120 mg) in the European Economic Area, U.K., Switzerland, and Turkey, with the right of first negotiation if the Company decides to enter into licensing arrangements in countries in the Middle East, Africa, and India.

Under the terms of the Accord License Agreement, the Company is entitled to receive an upfront payment of $50.0 million, which it expects to receive in the three months ending June 30, 2022. The Company is also eligible to receive up to $90.5 million in commercial launch, sales-based, and other milestones, as well as tiered royalties from the high-teens to mid-twenties on net sales of ORGOVYX in Accord’s territories.

Under the terms of the Accord License Agreement, the Company retains all rights to relugolix in the U.S. with its collaboration partner, Pfizer, as well as rights to relugolix in other therapeutic areas outside of prostate cancer, uterine fibroids, and endometriosis in Europe. The Company will continue to lead the global development of relugolix and provide initial product supply to Accord. Accord will be responsible for certain local clinical development and all commercialization for its territories, and has the option to manufacture relugolix in the future.

The term of the Accord License Agreement shall expire on a country-by-country basis upon expiry of the Royalty Term (as defined in the Accord License Agreement). The Accord License Agreement may be terminated in its entirety or on a country-by-country basis by either party for the uncured material breach or bankruptcy of the other party, and for certain other reasons in accordance with the terms of the Accord License Agreement.