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Research and Distribution Agreement
6 Months Ended
Jun. 30, 2011
Research And Distribution Agreement [Abstract]  
Research and Distribution Agreement
Note 7:    Research and Distribution Agreement
On February 9, 2010, the Company entered into an initial five (5) year research and distribution agreement with Chi-Fu Trading Co., Ltd. (the “Research and Distribution Agreement”). The Research and Distribution Agreement grants Chi-Fu the exclusive right to promote, market, sell and distribute the Delcath system for chemosaturation therapy in Taiwan for hepatic malignancies and infectious disease upon Taiwan Food and Drug Administration (“TFDA”) approval, and for any other TFDA approved indications for treatment using the Delcath system for chemosaturation therapy (collectively, the “Field of Use”). The Research and Distribution Agreement also grants Chi-Fu the right to extend its exclusive distribution rights to Singapore, subject to the satisfaction of certain conditions, including satisfying minimum purchase commitments.

Beginning on the first day of the month in which TFDA approval is obtained, Chi-Fu is obligated to purchase a minimum number of Delcath systems annually during the term of the Research and Distribution Agreement; with such minimum purchase requirements to increase annually over the remaining term of the Research and Distribution Agreement.  The Research and Distribution Agreement requires Chi-Fu to pay Delcath $1 million in milestone payments, of which $300,000 was paid upon execution of the Research and Distribution Agreement. The timing of the remaining payments will be subject to a modification currently being discussed. The modified timing reflects the Company's decision to focus its resources on melphalan in its initial clinical studies of primary liver cancer instead of doxorubicin as was envisioned by the parties in the original agreement.