Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

13. SUBSEQUENT EVENTS

Termination Fees

As described in Note 2 – Terminated Merger Transaction with Auxilium, on October 8, 2014 the Merger Agreement terminated after Auxilum delivered a notice of termination to QLT informing QLT that Auxilium’s board of directors had determined that the Endo Proposal was a superior proposal under the terms of the Merger Agreement. Due to this change in recommendation by Auxilium’s board of directors and in accordance with the termination provisions of the Merger Agreement, on October 9, 2014 Auxilum paid QLT a termination fee of $28.4 million. On October 22, 2014, pursuant to the terms of our financial advisory services agreement with Credit Suisse, we paid Credit Suisse a fee of $5.7 million in connection the termination of the Merger Agreement. Given that these fees were triggered by the termination of the Merger Agreement which occurred on October 8, 2014, they have not been recognized on the September 30, 2014 consolidated balance sheet but will be accounted for in the fourth quarter of 2014.

Appointment of Interim Chief Executive Officer

On October 23, 2014, Dr. Geoffrey F. Cox, a current director of QLT, was appointed Interim Chief Executive Officer and the Executive Transition Committee of the Board of Directors was concurrently disbanded. The Executive Transition Committee was formed on August 2, 2012 to perform the function of the Chief Executive Officer while the board of directors explored strategic alternatives and determined the resources and management necessary to pursue such options.