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REVENUE RECOGNITION AND COLLABORATIVE ARRANGEMENTS | 12 Months Ended
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Dec. 31, 2021
REVENUE RECOGNITION AND COLLABORATIVE ARRANGEMENTS |
REVENUE RECOGNITION AND COLLABORATIVE ARRANGEMENTS | 3. REVENUE RECOGNITION AND COLLABORATIVE ARRANGEMENTS Revenue from Collaborative Arrangements We recognize royalty revenue on net sales of products with respect to which we have contractual royalty rights in the period in which the royalties are earned. Royalties, which may include adjustments of estimates of net sales in prior periods, are recognized net of amortization of capitalized fees associate with any approval and launch milestone payments made to GSK. Net revenue recognized under our GSK Agreements was as follows:
|  | Year Ended December 31, |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Royalties from a related party - RELVAR/BREO |  | $ | 234,066 |  |  | $ | 221,536 |  |  | $ | 189,424 |
Royalties from a related party - ANORO |  |  | 44,935 |  |  |  | 45,992 |  |  |  | 42,625 |
Royalties from a related party - TRELEGY |  |  | 126,688 |  |  |  | 73,089 |  |  |  | 42,790 |
Total royalties from a related party |  |  | 405,689 |  |  |  | 340,617 |  |  |  | 274,839 |
Less: amortization of capitalized fees paid to a related party |  |  | (13,823 | ) |  |  | (13,823 | ) |  |  | (13,823 | )
Royalty revenue |  |  | 391,866 |  |  |  | 326,794 |  |  |  | 261,016 |
Strategic alliance - MABA program |  |  | — |  |  |  | 10,000 |  |  |  | — |
Total net revenue from GSK |  | $ | 391,866 |  |  | $ | 336,794 |  |  | $ | 261,016 |
LABA Collaboration As a result of the launch and approval of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA® in the U.S., Japan and Europe, we paid milestone fees to GSK totaling $220.0 million during the year ended December 31, 2014. The milestone fees paid to GSK were recognized as capitalized fees paid to a related party, which are being amortized over their estimated useful lives commencing upon the commercial launch of the product. The amortization expense is recorded as a reduction to the royalties from GSK. We are entitled to receive annual royalties from GSK on sales of RELVAR®/BREO® ELLIPTA® as follows: 15% on the first $3.0 billion of annual global net sales and 5% for all annual global net sales above $3.0 billion. Sales of single‑agent LABA medicines and combination medicines would be combined for the purposes of this royalty calculation. For other products combined with a LABA from the LABA Collaboration, such as ANORO® ELLIPTA®, royalties are upward tiering and range from 6.5% to 10%. We are also entitled to 15% of royalty payments made by GSK under its agreements originally entered into with us, and since assigned to TRC in connection with the Spin-Off, including TRELEGY® ELLIPTA®, which royalties are upward tiering and range from 6.5% to 10%. 2004 Strategic Alliance During the year ended December 31, 2020, we recognized $10.0 million in revenue from a termination fee paid in connection with the termination of the Bifunctional Muscarinic Antagonist-Beta2 Agonist (“MABA”) program under the Strategic Alliance Agreement with GSK.

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