Termination of Collaboration with Cardiome Pharma Corp. (“Cardiome”)

12 Months Ended

Dec. 31, 2015

Termination Of Collaboration With Cardiome Pharma Corp. (“Cardiome”) [Abstract]

Termination Of Collaboration With Cardiome Pharma Corp. (“Cardiome”)

Note 17 — Termination of Collaboration with Cardiome Pharma Corp. (“Cardiome”)

In August 2015, Cardiome, from whom the Company licensed marketing and commercialization rights to the heart medication Aggrastat®, and the Company mutually agreed to end their collaboration for Aggrastat and terminate the Company’s exclusive distributorship in China for the product, resulting in the Company’s obligation to return all rights to the product to Cardiome. The Company recorded Aggrastat revenues of $1.8 million, $1.1 million, and $0 million for the years ended December 31, 2015, 2014, and 2013, respectively, and the Company does not expect to generate any further Aggrastat revenues.

The terms of the agreement include up to $750,000 in transition payments to be received by the Company from Cardiome over approximately a one year period and require Cardiome to repurchase Aggrastat inventory held by the Company at its original purchase price. Transition payments in the amount of $450,000 were collected from Cardiome during the second half of fiscal 2015 and were recorded as a credit to general and administrative expenses. During the fourth quarter of 2015, the Company received $1.1 million from Cardiome for repurchased inventory. The Company recorded the $1.1 million for reimbursement for inventory returned as a reduction in cost of product sales since all of such inventory had previously been written down to zero.

For the year ended December 31, 2015, the Company recorded a liability of $0.6 million, and a corresponding offset to revenue and cost of goods sold, related to Aggrastat product due to expire in mid-2016 that it expects to repurchase from its customer in connection with the termination of its agreement with Cardiome. Under the terms of the agreement, Cardiome is not obliged to repurchase this inventory already sold to the Company’s distributors. The Company does not expect to resell this inventory.