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FORMER COLLABORATION AGREEMENT | 9 Months Ended
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Sep. 30, 2019
Former Collaborative Arrangement Disclosure [Abstract] |
FORMER COLLABORATION AGREEMENT | 3. FORMER COLLABORATION AGREEMENT On November 13, 2014, we and Janssen entered into the Collaboration Agreement under which we granted to Janssen exclusive worldwide rights to develop and commercialize imetelstat for all human therapeutic uses, including hematologic myeloid malignancies. Under the Collaboration Agreement, Janssen initiated two clinical trials of imetelstat: IMbark and IMerge. Under the terms of the Collaboration Agreement, prior to its termination, development costs for IMbark and IMerge were shared between us and Janssen on a 50/50 basis, including costs related to patents licensed to Janssen. Janssen terminated the Collaboration Agreement effective September 28, 2018. Upon the effective date of termination, we regained the global rights to the imetelstat program and are continuing development of imetelstat on our own. As a result of the termination of the Collaboration Agreement, we will not receive any further milestone payments or royalties from Janssen for the development or commercialization of imetelstat, including any clinical development or sales milestones, and Janssen has no further obligations to us or any third parties, such as clinical sites or vendors, to fund any potential future imetelstat clinical trials. On June 14, 2019, we entered into a Clinical Supply Agreement, or Supply Agreement, with Janssen to purchase certain inventories of drug product, drug substance and raw materials for imetelstat manufacturing. Under the Supply Agreement, we will pay Janssen approximately $7,500,000 for drug product upon shipment of the product to our specified drug distribution centers, and such payment is expected to occur in the first quarter of 2020. We have also agreed to pay up to approximately $6,700,000 for drug substance and raw materials upon testing to confirm that such materials meet our specifications and delivery by Janssen. We expect such payment to be made in the first quarter of 2020. We are not obligated to purchase materials that do not pass testing and conform to our specifications. With all sponsorship responsibilities for imetelstat now transferred from Janssen to us, we are responsible for supporting IMbark and the Phase 2 portion of IMerge, as well as the Phase 3 portion of IMerge. Since September 28, 2018, our responsibility for imetelstat development costs incurred by Janssen, including continuing support of ongoing clinical trials of imetelstat, increased from 50% to 100%. As of September 30, 2019, the amount due to Janssen of $1,208,000 on our condensed balance sheet primarily represents the amount owed to Janssen for operational support of the imetelstat program for the three months ended September 30, 2019.

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- Definition Former collaborative arrangement disclosure. + References No definition available. + Details
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- Definition The entire disclosure for former collaborative arrangements in which the entity is a participant, including a) information about the nature and purpose of such arrangements; b) its rights and obligations thereunder; c) the accounting policy for such arrangements; and d) the income statement classification and amounts attributable to transactions arising from the former collaborative arrangement between participants. + References No definition available. + Details
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