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Casi Holdings and Evomela Supply Contract
9 Months Ended
Sep. 30, 2020
Other Commitments [Abstract]  
Casi Holdings and Evomela Supply Contract CASI HOLDINGS AND EVOMELA SUPPLY CONTRACT
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 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”. Given our fulfillment of this order in October 2019, this arrangement was complete as of December 31, 2019.
Our aggregate equity holdings of 9.2 million common shares as of September 30, 2020 represented less than 10.0% ownership with a fair market value of $14.1 million. During the second quarter of 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 nine months ended September 30, 2020.