Severance and Retention Costs

3 Months Ended

Mar. 31, 2021

Severance and Retention Costs [Abstract]

Severance and Retention Costs

7. Severance and Retention Costs

Akcea Acquisition

As a result of the Akcea Acquisition in October 2020, we began recognizing severance and retention expenses in the fourth quarter of 2020. The following table summarizes our total estimated severance and retention expenses related to the Akcea Acquisition (in millions):

	Severance and Retention Expenses
Total estimated expenses	$	28.5
Expenses incurred in the three months ended December 31, 2020		15.3
Expenses incurred in the three months ended March 31, 2021		5.4
Remaining estimated expenses to be recognized through October 2021	$	7.8

The following table summarizes our severance and retention expenses related to the Akcea Acquisition that we recognized during the three months ended March 31, 2021 (in millions):

	Three Months Ended March 31, 2021
Research, development and patent expenses	$	2.5
Selling, general and administrative expenses		2.9
Total	$	5.4

The following table summarizes the severance and retention reserve amounts related to the Akcea Acquisition that we included in accrued compensation for the period indicated (in millions):

	Three Months Ended March 31, 2021
Beginning balance	$	14.7
Amounts expensed during the period		6.1
Reserve adjustments during the period		(0.7	)
Net amount expensed during the period		5.4
Amounts paid during the period		(9.0	)
Ending balance	$	11.1

The reserve adjustments during the period primarily related to forfeitures of severance and retention payments as a result of employee terminations before they earned the amounts.

Restructured European Operations

As a result of restructuring our European operations, or Restructured European Operations, in December 2020, we began recognizing severance and retention expenses in the fourth quarter of 2020. The following table summarizes our total severance and retention expenses related to our Restructured European Operations (in millions):

	Severance and Retention Expenses
Total estimated expenses	$	13.6
Expenses incurred in the three months ended December 31, 2020		12.5
Expenses incurred in the three months ended March 31, 2021		0.7
Remaining estimated expenses through October 2021	$	0.4

The following table summarizes the severance and retention expenses related to our Restructured European Operations that we recognized during the three months ended March 31, 2021 (in millions):

	Three Months Ended March 31, 2021
Research, development and patent expenses	$	0.1
Selling, general and administrative expenses		0.6
Total	$	0.7

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

	Three Months Ended March 31, 2021
Beginning balance	$	12.4
Amounts expensed during the period		2.2
Reserve adjustments during the period		(1.5	)
Net amount expensed during the period		0.7
Amounts paid during the period		(11.9	)
Ending balance	$	1.2

The reserve adjustments during the period primarily related to tax expense adjustments.

Restructured North American TEGSEDI Operations

In April 2021, we entered into a distribution agreement with Sobi for TEGSEDI in North America. Under the terms of the distribution agreement, we will retain the marketing authorizations for TEGSEDI in the U.S. and Canada. We will continue to supply commercial product to Sobi and manage regulatory and manufacturing processes, as well as relationships with key opinion leaders. We will also continue to lead the TEGSEDI global commercial strategy. Sobi will otherwise have responsibility for commercializing TEGSEDI in the U.S. and Canada and will assume these activities by August 2021.

In connection with restructuring our North American TEGSEDI operations, or Restructured North American TEGSEDI Operations, we enacted a plan to reorganize our Akcea workforce in North America to better align with the needs of our business, or the Reorganization Plan, and to focus on our wholly owned pipeline. Under the Reorganization Plan, we expect to incur restructuring charges in the range of $11 million to $14 million principally in the second quarter of 2021.