Co-Promotion Arrangement With Eagle Pharmaceuticals

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Co-promotion Arrangement With Eagle Pharmaceuticals

CO-PROMOTION ARRANGEMENT WITH EAGLE PHARMACEUTICALS

In November 2015, we executed an agreement with Eagle Pharmaceuticals, Inc. ("Eagle") whereby designated members of our sales force concurrently marketed up to six of Eagle's products (along with our products). This arrangement was in return for fixed monthly payments (aggregating $12.8 million), and variable sales-based milestones from Eagle over an 18 month contract term from January 1, 2016 through June 30, 2017 (the "Eagle Agreement"). On July 1, 2017 our sales force ceased marketing Eagle products and the Eagle Agreement expired under its terms.

The fixed receipts from Eagle for our sales activities, as well as reimbursements of third-party marketing services, are recognized within "license fees and service revenue" on our accompanying Consolidated Statements of Operations, and was $0, $4.7 million, and $9.1 million, for the years ended December 31, 2018, December 31, 2017, and December 31, 2016, respectively. No sales-based milestones were achieved in the current or prior periods.

An allocation of costs of our sales personnel that were dedicated to the Eagle Agreement are reported within "cost of service revenue" on our accompanying Consolidated Statement of Operations, as are reimbursed costs for Eagle marketing activities; these were an aggregate of $0, $4.2 million, and $7.9 million for the years ended December 31, 2018, December 31, 2017, and December 31, 2016, respectively.