Subsequent Event

12 Months Ended

Dec. 31, 2017

19.	Subsequent Events

HEPLISAV-B

We commenced commercial shipments of HEPLISAV-B in the first quarter of 2018. On February 21, 2018, the Centers for Disease Control and Prevention's (“CDC”) Advisory Committee on Immunization Practices (“ACIP”) voted unanimously in favor of including HEPLISAV-B on its list of ACIP recommended products for use to vaccinate adults against hepatitis B.

Term Loan Agreement

On February 20, 2018, we entered into a $175.0 million term loan agreement (“Loan Agreement”) with CRG Servicing LLC. The Loan Agreement provides for a $175.0 million term loan facility, $100.0 million of which was borrowed at closing and, subject to the satisfaction of certain market capitalization and other borrowing conditions, up to an additional $75.0 million at our option on or before July 17, 2019.

The loans have a maturity date of December 31, 2023, unless earlier prepaid. The loans bear interest at a rate equal to 9.50% per annum.

Sublicense Agreement

On February 16, 2018, we entered into a Sublicense Agreement (the “Sublicense Agreement”) with Merck Sharpe & Dohme Corp. (the “Sublicensor”). The Sublicense Agreement grants us, under certain non-exclusive U.S. patent rights controlled by the Sublicensor which relate to recombinant production of Hepatitis B surface antigen, the right to manufacture, use, offer for sale, sell and import HEPLISAV-B, adult Hepatitis B Vaccine, to prevent hepatitis B and diseases caused by hepatitis B in the United States and includes the right to grant further sublicenses. In consideration, we made a $7.0 million payment to the Sublicensor in February 2018. The remaining two payments of $7.0 million each are due in the first quarter of each of 2019 and 2020.