Subsequent Events

12 Months Ended

Dec. 31, 2017

Subsequent Events

Subsequent Events

Note 18. Subsequent Events

In January 2018, we entered into a target discovery, research collaboration and option agreement with Syros Pharmaceuticals, Inc. Under this agreement, Syros will use its proprietary gene control platform to identify novel therapeutic targets with a focus in myeloproliferative neoplasms and we have received options to obtain exclusive worldwide rights to intellectual property resulting from the collaboration for up to seven validated targets.  We will have exclusive worldwide rights to develop and commercialize any therapies under the collaboration that modulate those validated targets.  We have agreed to pay Syros up to $54.0 million in target selection and option exercise fees should we decide to exercise all of our options under the agreement. For products resulting from the collaboration against each of the seven selected and validated targets, we have agreed to pay up to $50.0 million in potential development and regulatory milestones and up to $65.0 million in potential commercial milestones. Syros is also eligible to receive low single-digit royalties on net sales of products resulting from the collaboration. We also entered into a related stock purchase agreement with Syros.

We paid Syros $2.5 million in cash for access to proprietary technology and $7.5 million in cash for research and development services which will be recorded in research and development expense, and $10.0 million for the purchase of common stock at $12.61 per share which will be recorded as a long term investment.