Casi Holdings and Evomela Supply Contract

6 Months Ended

Jun. 30, 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 June 30, 2020

Our aggregate equity holdings of 9.2 million common shares as of June 30, 2020 represented less than 10.0% ownership with a fair market value of $23.1 million (see Note 3(a)). During May and June 2020, we completed the sale of 0.8 million common shares and recognized a $0.5 million gain within “other income (expense), net” within the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020.