Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

Overview

In March 2019 we completed the sale of our seven then-commercialized drugs, including FUSILEV, KHAPZORY, FOLOTYN, ZEVALIN, MARQIBO, BELEODAQ, and EVOMELA (the “Commercial Product Portfolio”) to Acrotech Biopharma LLC (“Acrotech”) (the “Commercial Product Portfolio Transaction”). Upon closing we received $158.8 million in an upfront cash payment. We are also entitled to receive up to an aggregate of $140 million upon Acrotech’s future achievement of certain regulatory milestones (totaling $40 million) and sales-based milestones (totaling $100 million) relating to the Commercial Product Portfolio.

Substantially all of the contractual rights and obligations associated with the Commercial Product Portfolio were transferred to Acrotech at the closing of the Commercial Product Portfolio Transaction. However, under the terms of this transaction we retained our trade “accounts receivable, net” and GTN liabilities included within “accounts payable and other accrued liabilities” associated with our product sales made on and prior to February 28, 2019. Accordingly, these Consolidated Financial Statements reflect the corresponding revenue-deriving activities and allocable expenses of this commercial business within “discontinued operations”.

Consolidated Statements of Operations

The following table presents the various elements of “income (loss) from discontinued operations, net of income taxes” as reported in the accompanying Consolidated Statements of Operations:

	Year ended December 31,
	2021		2020
Revenues:
Product sales, net	$	—	$	10,668
Total revenues	$	—	$	10,668
Operating costs and expenses:
Cost of sales (excluding amortization of intangible assets)	133		88
Selling, general and administrative	—		219
Research and development	59		(43)
Total operating costs and expenses	$	192	$	264
Income (loss) from discontinued operations before income taxes	(192)		10,404
Provision for income taxes from discontinued operations	—		—
Income (loss) from discontinued operations, net of income taxes	$	(192)	$	10,404

For the year ended December 31, 2018, management identified certain immaterial errors aggregating to $12.0 million that substantially relates to ZEVALIN rebates owed to qualifying Public Health Service (“PHS”) hospitals from 2009 through the first quarter of 2019.

On July 3, 2020, pursuant to communications we had with the Health Resources and Services Administration (“HRSA”), we posted a notification on the HRSA website with instructions for PHS customers on how to make claims with the Company for refunds for the additional rebate amounts they may be eligible for and no claims were made by customers. Accordingly, we recorded a reduction to government chargebacks liability of $10.8 million in 2020, which was recognized within the “Product sales, net” caption of the Consolidated Statements of Operations for discontinued operations.