ASSET ACQUISITION AGREEMENTS WITH MAYNE PHARMA/HOSPIRA

9 Months Ended

Sep. 30, 2012

ASSET ACQUISITION AGREEMENTS WITH MAYNE PHARMA/HOSPIRA

ASSET ACQUISITION AGREEMENTS WITH MAYNE PHARMA/HOSPIRA

NOTE 9. ASSET ACQUISITION AGREEMENTS WITH MAYNE PHARMA/HOSPIRA

        In August 2006, we closed a transaction with Mayne Pharma (USA), Inc. ("Mayne"), pursuant to which Mayne acquired the North American rights to Nipent® and our SurfaceSafe® cleaning system. Mayne was acquired by Hospira, Inc. in February 2007. In April 2007, we closed another transaction with Mayne/Hospira completing the sale of the remaining worldwide rights for Nipent for total consideration of up to $8.3 million. From the sale of the remaining worldwide rights we received an initial up-front payment of $3.75 million, and the balance of the purchase price was guaranteed and payable in five installments over a five year period on the anniversary dates of the closing date.

        Due to the Company's determination that the Nipent operations sold to Mayne/Hospira did not represent a separate component of our Company and our continuing involvement with the Nipent operations, resulting from entering into related agreements and the related additional obligations, we have reflected activities related to the Nipent and SurfaceSafe businesses in operating activities for all periods presented.

        During each of the nine month periods ended September 30, 2012 and 2011, we received $700,000, representing the fourth and fifth installment payments from Mayne/Hospira related to the sale of the remaining worldwide Nipent rights. These amounts were recorded as gain on sale of products. No further payments are expected under this transaction in future periods.