Subsequent Events |
6 Months Ended | |
|---|---|---|
Jun. 30, 2015 | ||
| Subsequent Events [Abstract] | ||
| Subsequent Events |
14. Subsequent Events
Altamira Bio, Inc.
On July 16, 2015, Fortress completed the transaction in which its Fortress Company, Altamira Bio, acquired from New Zealand Pharmaceuticals Ltd (NZP), a license from the National Institutes of Health (NIH) and Cooperative Research and Development Agreements (CRADAs) for the development of oral N-acetyl-D-mannosamine (ManNAc), a key compound in the sialic biosynthetic pathway, for the treatment of hyposialylation disorders, including GNE myopathy and various forms of nephropathy. As part of this agreement, Altamira provided NZP and NIH an upfront payment of approximately $1.3 million comprised of an upfront milestone payment of $0.7 million to NZP and reimbursement of $0.6 million of development costs for Phase II Myppathy and Phase I Nephropath Clinical Trial being conducted at the NIH. Additional development and sales-based milestone payments are payable upon achievement.
Scientific Collaboration Agreement
In July 2015, Fortress entered into a collaboration agreement with a leader in yeast based, fully human antibody discovery and optimization using a proprietary core technology platform. Under the terms of the agreement Fortress collaborate with this leader with at least four and potentially six projects. Fortress will paid an upfront fee of $50,000. Future payments shall be made on a project basis whereby Fortress will pay a research funding fee as well as fees related to the achievement of technical milestones. Upon conclusion of the optimization, Fortress may exercise an option to further develop the antibody. George Avgerinos Grant On July 15, 2015, Mr. George Avgerinos, Senior Vice President of Fortress was granted 1.0 million Restricted Stock Units. As a condition of this grant Mr. Avgerinos’ option grant dated June 2013 for 200,000 shares was surrendered and Fortress will record a charge in the third quarter of 2015 for this grant. The restricted shares vest 10% immediately and an additional 10% per year over four years commencing the later of trading availability, under Fortress’ Insider Trading Policy, or July 15, 2015. The remaining 50% vests in accordance with the achievement of performance goals. David Barrett On July 15, 2015, the Board of Directors voted to accelerate the vesting of 133,000 restricted shares granted to David Barrett for his service on the Board of Directors through July 15, 2015. In connection with this acceleration Fortress will record a charge in the third quarter of 2015. Dov Klein On July 15, 2015, Mr. Dov Klein joined the Board of Directors of Fortress. In connection with Mr. Klein joining the Board he was granted 50,000 shares of restricted stock, which vest 25% per year over the next four years. Long-Term Incentive Program At the Company’s stockholders Meeting on July 15, 2015 the shareholders’ also approved the Fortress Biotech, Inc. Long Term Incentive Plan (the “LTIP”) for the Company’s Chairman, President and Chief Executive Officer, Lindsay A. Rosenwald, M.D., and Executive Vice Chairman, Strategic Development, Michael S. Weiss. The LTIP consists of a program to grant equity interests in the Company and newly formed subsidiaries and a performance- based bonus program that is designed to result in performance-based compensation that is deductible without limit under Section 162(m) of the Internal Revenue Code of 1986, as amended. Dr. Falk Pharma GmbH (“Falk”) On August 3, 2015, the Company received notification from Falk that the Final Clinical Study Report, or CSR has been completed and that Falk is prepared to grant access to the CSR. Upon receipt of access to the CSR, the Company will record the liability of €2.5 million ($2.7 million). |