Casi Holdings and Evomela Supply Contract

3 Months Ended

Mar. 31, 2020

Other Commitments [Abstract]

Casi Holdings and Evomela Supply Contract

CASI HOLDINGS AND EVOMELA SUPPLY CONTRACT

        Overview of CASI Transaction

In 2014, we executed three perpetual out-license agreements for our former products ZEVALIN, MARQIBO, and EVOMELA (“CASI Out-Licensed Products”) with CASI, a publicly-traded biopharmaceutical company (NASDAQ: CASI) with a primary focus on the China market (collectively, the “CASI Out-License”). Under the CASI Out-License, we received CASI common stock and a secured promissory note and CASI gained the exclusive rights to distribute the CASI Out-Licensed Products in greater China (which includes Taiwan, Hong Kong, and Macau).

In March 2019, we completed the Commercial Product Portfolio Transaction (see Note 1(b)) and substantially all of the contractual rights and obligations associated with these products, including the CASI Out-License, were transferred to Acrotech at closing. However, on an interim basis we retained our original supply agreement with CASI for EVOMELA. Corresponding revenue for shipped product has been recognized within discontinued operations “product sales, net” (see Note 10). Given our fulfillment of this order in October 2019, this arrangement was complete as of December 31, 2019.

        Our Ownership in CASI at March 31, 2020

Under certain conditions that expired in December 2017, we exercised our rights during 2016 and 2017 to purchase additional shares of CASI common stock at par value in order to maintain our post-investment ownership percentage. Our aggregate holding of 10.0 million CASI common shares as of March 31, 2020 represented an approximate 10.0% ownership with a fair market value of $20.5 million (see Note 3(a)).