|Commitments and Contingencies
Note 3 - Commitments and Contingencies
License and Research Agreements
The Company has entered
into license and research and development agreements with third parties under which the Company was obligated to make upfront payments
as well as milestone and royalty payments. Notable inclusions in this category are:
||AbbVie Biotherapeutics Corp. - The Company entered into a Product Development and Patent License Agreement with AbbVie Biotherapeutics Corp. in 2003 to secure exclusive rights to a specific antibody when conjugated with alpha emitting radioisotopes. Upon execution of the agreement, the Company made a license fee payment of $3,000,000.
The Company agreed
to make milestone payments totaling $7,750,000 for the achievement of certain contracted milestones.
Under the agreement,
the Company shall pay to AbbVie Biotherapeutics Corp. on a country-by-country basis a royalty of 12% of net sales of all licensed
products until the later of: (1) 12.5 years after the first commercial sale, or (2) when the patents expire.
The Company met its
first milestone in 2012 and upon reaching the milestone the Company paid AbbVie Biotherapeutics Corp. a milestone payment of $750,000. The
milestone payment for the Phase 1 Clinical Trial was recorded as research and development expense. In September 2016, the Company
met its second milestone and as of March 31, 2018, $750,000 was included in accounts payable and accrued expenses on the balance
||MSKCC - see Note 2 - Related Party Transactions.
||Oak Ridge National
Laboratory (“ORNL”) – The Company is contracted to purchase radioactive material to be used for research and
development, with a renewal option at the contract end. On December 13, 2017, the Company signed a contract with ORNL to purchase
$0.2 million of radioactive material during calendar year 2018. During the three months ended March 31, 2018 and 2017, the Company
purchased material from ORNL of approximately $0.1 million.
||On June 15, 2012, the Company entered into a license and sponsored research agreement with Fred Hutchinson Cancer Research Center (“FHCRC”) to build upon previous and ongoing clinical trials, with BC8 (licensed antibody). FHCRC has currently completed both a Phase 1 and Phase 2 clinical trial with BC8. The Company has been granted exclusive rights to the BC8 antibody and related master cell bank developed by FHCRC. A milestone payment of $1 million will be due to FHCRC upon FDA approval of the first drug. Upon commercial sale of the drug, royalty payments of 2% of net sales will be due to FHCRC. For the three months ended March 31, 2018 and 2017, the Company incurred expenses of $0 and $27,000, respectively, related to this agreement.
||On February 27,
2014, the Company entered into a manufacturing agreement with Goodwin Biotechnology Inc. (“Goodwin”). Goodwin oversees
the current Good Manufacturing Practices (“cGMP”) production of a monoclonal antibody to be used in the Phase 3 clinical
trial of Iomab-B. As of March 31, 2018, the remaining cost of the service agreement is approximately $1.8 million. For each of
the three months ended March 31, 2018 and 2017, the Company paid Goodwin $0.4 million and $0.1 million, respectively.
||On February 16, 2016, the Company entered into an agreement with Medpace, Inc. (“Medpace”), a Contract Research Organization. Medpace provides project management services for the Iomab-B study. The total project is estimated to cost approximately $7.2 million. Medpace bills the Company when services are rendered and the Company records the related expense to research and development costs. For the three months ended March 31, 2018 and 2017, the Company paid Medpace $0.6 million and $0.4 million, respectively.
||On August 4, 2016, the Company entered into a CRO agreement with George Clinical Services, (“George”). George provides project management services for the study of Actimab-A used for a Phase 2 clinical trial. The total project is estimated to cost approximately $4.6 million. For the three months ended March 31, 2018 and 2017, the Company paid George $0.7 million and $0.2 million, respectively.
In March 2018, the
Company entered into a research and option agreement with Astellas Pharma Inc. (“Astellas”) to develop ARCs using the
Company’s AWE Platform Technology. Under this collaboration, the Company will utilize its AWE Platform to conjugate and label
selected Astellas targeting agents with an Actinium-225 payload. The Company will also be responsible for conducting preclinical
validation studies on any ARCs generated. Payments from Astellas under this agreement will be accounted for as a reduction to research
and development expense.