Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Operating Leases

The Company leases manufacturing, office and laboratory space in Rockville, Maryland under five leases that have terms that expire between 2018 and 2023 unless renewed. During the three months ended June 30, 2017, one of these leases was renewed for an additional five years. The Rockville leases include a seven-year lease executed in July 2015 for additional space that the Company intends to use as mixed-use office, laboratory and manufacturing space. Under the terms of the lease, which commenced on January 1, 2016, the Company received an assignment fee from the former tenant and a tenant improvement allowance from the landlord totaling $5.1 million, which has been recorded as deferred rent and will be recognized over the lease term. The Company also leases office and laboratory space in South San Francisco under a lease that expires on February 28, 2018. During the year ended December 31, 2016, the Company entered into a sublease agreement for a portion of the South San Francisco space (see Note 4). As of June 30, 2017, future payments to be received by the Company under this sublease total approximately $0.5 million. In April 2017, the Company entered into a 72-month lease commencing December 1, 2017 for office and laboratory space which will be occupied upon the termination of the current South San Francisco lease.

All of the leases contain rent escalation clauses and certain leases contain rent abatements. For financial reporting purposes, rent expense is charged to operations on a straight-line basis over the term of the lease.

Future minimum lease payments under noncancelable operating leases as of June 30, 2017 are as follows (in thousands):



Year Ended December 31,
2017	$	6,391
2018	5,346
2019	5,077
2020	3,454
2021	3,926
Thereafter	5,129
	$	29,323

Contingencies

From time to time, the Company may be subject to various litigation and related matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred.