Severance and Retention Costs related to our Restructured European Operations

12 Months Ended

Dec. 31, 2020

Severance and Retention Costs related to our Restructured European Operations

Severance and Retention Costs related to our Restructured European Operations

8. Severance and Retention Costs related to our Restructured European Operations

In the fourth quarter of 2020, we entered into a distribution agreement with Sobi to commercialize TEGSEDI and WAYLIVRA in Europe. Under the distribution agreement, Sobi took over all material distribution operations at the end of January 2021. We remain the marketing authorization holder for TEGSEDI and WAYLIVRA in Europe. We will continue to maintain limited European operations including regulatory, manufacturing, and the management of relationships with key opinion leaders. We will also continue to lead the TEGSEDI and WAYLIVRA global commercial strategy.

As a result of this change, we expect to incur up to $14.8 million of severance and retention expenses. During the fourth quarter of 2020, we recorded $12.5 million of severance and retention related costs in operating expenses related to this agreement. We will recognize the remaining expenses through October 2021, of which we will recognize the majority of the remaining expenses in the first quarter of 2021.

The following table summarizes the costs by category related to our restructured European operations (in millions):

	Three Months Ended December 31, 2020
R&D expenses	$	4.2
SG&A expenses		8.3
Total	$	12.5

The following table summarizes the severance and retention reserve included in accrued compensation for the periods indicated related to our restructured European operations (in millions):

	Three Months Ended December 31, 2020
Severance & retention reserve beginning balance	$	—
Severance & retention expensed during period		12.5
Amounts paid during the period		(0.1	)
Severance & retention reserve ending balance	$	12.4