Subsequent Event

6 Months Ended

Jun. 30, 2017

Subsequent Event

Subsequent Event

8. Subsequent Events

In July 2017, Akcea completed an IPO. Akcea raised $193.8 million of aggregate gross proceeds from the IPO, including $50 million from a private placement by Novartis. Akcea’s net proceeds were $182.4 million. As part of Akcea’s IPO, we invested $25.0 million. In conjunction with the IPO, our series A convertible preferred stock converted into common stock. Additionally, Akcea’s borrowings under its line of credit with us converted into common stock. As a result, we retained approximately 68 percent ownership in Akcea. Beginning in our third quarter of 2017, we will adjust our financial statements to reflect the non-controlling interest that we no longer own in Akcea.

Additionally, in July 2017, we purchased the building that houses our primary R&D facility and the building that houses our primary manufacturing facility for $79.4 million and $14.0 million, respectively. In conjunction with the purchase of the buildings we obtained a $51.3 million mortgage for our primary R&D facility with an interest rate of 3.88 percent and a $9.1 million mortgage for our primary manufacturing facility with an interest rate of 4.2 percent. Both mortgages mature in August 2027. We will record the impact of these transactions in our third quarter results.