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Collaboration Agreement with Related Party
9 Months Ended
Sep. 30, 2015
Collaboration Agreements  
Collaboration Agreement with Related Party
Collaboration Agreement with Related Party
The Company and Intrexon are parties to an exclusive channel collaboration agreement, as amended ("ECC"). Randal J. Kirk is the chairman of the board and chief executive officer of Intrexon and, together with his affiliates, owns more than 50% of Intrexon's common stock. Affiliates of Randal J. Kirk also collectively own more than 35% of our common stock. Our directors, Marcus Smith and Julian Kirk (who is the son of Randal J. Kirk), are employees of Third Security, LLC, which is an affiliate of Randal J. Kirk.
For the three months ended September 30, 2015 and 2014, the Company incurred total expenses of $1.8 million and $1.2 million, respectively, with Intrexon. Of the $1.8 million incurred during the 2015 period, $0.7 million related to direct expenses for work performed by Intrexon and $1.1 million related to pass-through costs. Of the $1.2 million incurred during the 2014 period, $0.5 million related to direct expenses for work performed by Intrexon and $0.7 million related to pass-through costs.
For the nine months ended September 30, 2015 and 2014, the Company incurred total expenses of $4.7 million and $3.0 million, respectively, with Intrexon. Of the $4.7 million incurred during the 2015 period, $2.4 million related to direct expenses for work performed by Intrexon and $2.3 million related to pass-through costs. Of the $3.0 million incurred during the 2014 period, $1.7 million related to direct expenses for work performed by Intrexon and $1.3 million related to pass-through costs.
As of September 30, 2015 and December 31, 2014, the Company had outstanding payables to Intrexon of $1.4 million and $1.0 million, respectively.
The Company and Intrexon entered into a letter agreement on September 29, 2015 pursuant to which the parties mutually agreed to terminate their collaboration with respect to the development of potential therapies to treat Ehlers-Danlos Syndrome.  As a result, neither party will have any further obligations under the ECC with respect to “autologous human fibroblasts genetically modified to express bioactive Tenascin X locally to correct connective tissue disorders”.  All other provisions of the ECC remain in full force and effect.