Subsequent Events Subsequent Events

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

Pfizer Inc.

In April 2018 we completed an agreement to acquire from Pfizer BIIB104 (formerly known as PF-04958242), a first-in-class, Phase 2b ready AMPA receptor potentiator for cognitive impairment associated with schizophrenia (CIAS). AMPA receptors mediate fast excitatory synaptic transmission in the central nervous system, a process which can be disrupted in a number of neurological and psychiatric diseases, including schizophrenia.

In connection with the closing of this transaction in the second quarter of 2018, we made an upfront payment of $75.0 million. We may also pay Pfizer up to $515.0 million in additional development and commercialization milestone payments, including $10.0 million upon the dosing of the first patient in Phase 2b, as well as tiered royalties in the low to mid-teen percentages.

Ionis Pharmaceuticals, Inc.

In April 2018 we entered into a new ten-year exclusive collaboration agreement with Ionis Pharmaceuticals, Inc. (Ionis) to develop novel antisense oligonucleotide drug candidates for a broad range of neurological diseases. Under this agreement, we will make an upfront payment of $375.0 million and purchase $500.0 million of Ionis’ common stock, at a 25% premium based on the closing price of Ionis’s common stock for the 10 days prior to the date of this agreement, for a total payment of $1.0 billion. The premium paid on the equity will be recorded as research and development expense in our condensed consolidated statements of income. We have the option to license therapies arising out of this collaboration and will be responsible for the development and commercialization of such therapies. We may pay development milestones to Ionis of up to $125.0 million or $270.0 million, depending on the indication, and royalties on net sales.

The transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the U.S., and is expected to close in the second quarter of 2018.