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Commitments and contingencies
 3 Months Ended
Mar. 31, 2015
Commitments and contingencies  
Commitments and contingencies

 

9. Commitments and contingencies

 

Operating leases

 

The Company leases office space under a noncancelable operating lease through February 2019. Rent expense was approximately $0.3 million for the three months ended March 31, 2015. The Company also leases certain office equipment under operating leases. Future minimum lease payments as of March 31, 2015 are as follows:

 

2015

 

$
1,016 

 

2016

 
946 

 

2017

 
923 

 

2018

 
1,035 

 

2019

 
176 

 

 

 

$
4,096 

 

 

Other contingencies

 

Under various agreements, the Company will be required to pay royalties and milestone payments upon the successful development and commercialization of products. The Company has entered into funding agreements with The Wellcome Trust Limited (Wellcome Trust) for the research and development of small molecule compounds. To the extent that the Company develops and commercializes program intellectual property on a for-profit basis, it may become obligated to pay to Wellcome Trust development and regulatory milestone payments of up to an aggregate of $68.9 million and single-digit royalties on sales of any research program product. The Company’s obligation to pay such royalties would continue on a country-by-country basis until the longer of the expiration of the last patent in the program intellectual property in such country covering the research program product and the expiration of market exclusivity of such product in such country.

 

The Company has also entered into a collaboration agreement with the SMA Foundation. The Company may become obligated to pay the SMA Foundation single-digit royalties on worldwide net product sales of any collaboration product that we successfully develop and subsequently commercialize or, if the Company outlicenses rights to a collaboration product, a specified percentage of certain payments the Company receives from the licensee. The Company is not obligated to make such payments unless and until annual sales of a collaboration product exceed a designated threshold. The Company’s obligation to make such payments would end upon its payment to the SMA Foundation of a specified amount.

 

The Company has employment agreements with certain employees that require the funding of a specific level of payments, if certain events, such as a change in control or termination without cause, occur.