Milestones and Sponsored Research Agreements |
3 Months Ended | |
|---|---|---|
Mar. 31, 2016 | ||
| Research and Development [Abstract] | ||
| Research, Development, and Computer Software Disclosure |
6. Milestones and Sponsored Research Agreements Helocyte In March 2016, Helocyte entered into an Investigator-Initiated Clinical Research Support Agreement with the City of Hope National Medical Center, to support a Phase 2 clinical study of its PepVax immunotherapy for CMV control in allogeneic stem cell transplant recipients. The Phase 2 study is additionally supported by grants from the National Cancer Institute. Under the terms of the agreement, Helocyte made an upfront payment to COH of $1.0 million and will pay COH up to an additional $2.0 million upon the achievement of certain clinical milestones. The agreement expires upon the delivery of a final study report or December 31, 2018 unless terminated earlier. In February 2016, Helocyte entered into an Investigator-Initiated Clinical Research Support Agreement with the City of Hope National Medical Center, to support a Phase 2 clinical study of its Triplex immunotherapy for CMV control in allogeneic stem cell transplant recipients. The Phase 2 study is additionally supported by grants from the National Cancer Institute. Under the terms of the agreement, Helocyte made an upfront payment to COH of $1.0 million, and will pay COH up to an additional $3.4 million upon the achievement of certain clinical milestones. The agreement expires upon the delivery of a final study report or May 31, 2018 unless terminated earlier. For the three month ended March 31, 2016, Helocyte incurred expense of $2.0 million, related to the sponsored research agreements, recorded as research and development expense in the Company’s Condensed Consolidated Statement of Operations. Mustang In March 2015, in connection with Mustang’s license with COH for the development of CAR-T, Mustang entered into a Sponsored Research Agreement in which Mustang will fund continued research in the amount of $2.0 million per year, payable in four equal installments, over the next five years. For the three month ended March 31, 2016 Mustang incurred expense of $0.5 million recorded as research and development expense in the Company’s Condensed Consolidated Statement of Operations. No expense was recorded for the three months ended March 31, 2015. CNDO-109 The Company has a license agreement with the University College London Business PLC (“UCLB”) under which the Company received an exclusive, worldwide license to develop and commercialize CNDO-109 to active NK cells for the treatment of cancer-related and other conditions. In consideration for the license, the Company made upfront payments totaling $0.1 million and may be required to make future milestone payments totaling up to approximately $22 million upon the achievement of various milestones related to regulatory or commercial events. In March 2016, the Company paid UCLB $0.4 million due upon completion of the Phase 1 study for Acute Myeloid Leukemia. In the event that CNDO-109 is commercialized, the Company is obligated to pay to UCLB annual royalties ranging from 3% to 5% based upon various levels of net sales of the product. Under the terms of the license agreement, the Company is allowed to grant sublicenses to third parties without the prior approval of UCLB. In the event that the Company sublicenses CNDO-109 to a third party, the Company is obligated to pay to UCLB all or a portion of the royalties the Company receives from the sub-licensee. Through March 31, 2016, the Company has not sub-licensed CNDO-109 to a third party. |