F-38
We have the potential to earn sublicense revenue and a portionofmilestone payments and royaltypayments thatAlnylam
receives from licenses of our technology it grants to its partners. To date, we have earned a total of $40.5million fromAlnylam
resulting from licenses of our technology for the development ofRNAi therapeutics and technology that we granted toAlnylam and
Alnylamhas granted to its partners. We are also eligible to receive $7.5million related toAlnylam’s recently announced
collaborationwithGenzyme upon the closingofAlnylam’s sale of stock toGenzyme.
During2013, 2012 and2011, we earned revenue fromour relationshipwithAlnylam totaling$1.5million, $2.7million and
$375,000, respectively.
Antisense Therapeutics Limited
InDecember 2001, we licensedATL1102 toATL, anAustralian company publicly tradedon theAustralianStockExchange.
ATL is developingATL1102 for the treatment ofmultiple sclerosis. In addition, ATL is currently developingATL1103 for growth
and sight disorders. We are eligible to receive royalties on sales ofATL1102 andATL1103. Wemay also receive a portionof the
feesATL receives if it licensesATL1102 orATL1103. AtDecember 31, 2013 and 2012, we owned less than10 percent ofATL’s
equity. During2013 and2012, we didnot earn any revenue fromour relationshipwithATL. During2011, we earned revenue of
$210,000 fromour relationshipwithATL formanufacturing serviceswe provided.
AtlanticPharmaceuticals Limited, formerlyAtlanticHealthcare (UK) Limited
InMarch2007, we licensed alicaforsen toAtlantic Pharmaceuticals, aUK-based specialty pharmaceutical company founded
in 2006, which is developing alicaforsen for the treatment of ulcerative colitis, orUC, and other inflammatorydiseases. Atlantic
Pharmaceuticals is initially developing alicaforsen for pouchitis, aUC indication, followedbyUC andother inflammatory diseases. In
exchange for the exclusive, worldwide license to alicaforsen, we received a $2millionupfront payment fromAtlantic Pharmaceuticals
in the formof equity.
Under the agreement, we could receive substantivemilestone payments totalingup to$1.4million for the achievement of
regulatorymilestones formultiple indications. Wewill earn the nextmilestone payment of $600,000 ifAtlantic Pharmaceuticals
submits anNDA for alicaforsenwith theFDA. In2010, AtlanticPharmaceuticals began supplying alicaforsenunder international
NamedPatient Supply regulations for patientswith inflammatorybowel disease, or IBD, forwhichwe receive royalties.
In 2010 and2013, we agreed to sellAtlantic Pharmaceuticals alicaforsendrug substance in return for shares ofAtlantic
Pharmaceuticals’ common stock. Additionally, in 2013we agreed to receive equity for the royalties that wewill earn fromAtlantic
Pharmaceuticals. We recorded a full valuation allowance for all of the equity paymentswe received fromAtlantic Pharmaceuticals,
including the upfront payment, because realizationof the equity payments is uncertain. At December 31, 2013 and2012, we owned
approximately 12 percent and11 percent, respectively, ofAtlantic Pharmaceuticals’ equity. We earned$671,000 related to royalties
and sales of drug substance in2013but because the paymentsweremade in equity, we didnot record any revenue. During2012,we
earned$3,000 related to royalties and during 2011we did not earn any revenue fromour relationshipwithAtlanticPharmaceuticals.
ExcaliardPharmaceuticals, Inc., awholly owned subsidiary of Pfizer Inc.
InNovember 2007, we entered into a collaborationwithExcaliard todiscover anddevelop antisense drugs for the local
treatment of fibrotic diseases, including scarring.We grantedExcaliard an exclusiveworldwide license for the development and
commercializationof certain antisense drugs. Excaliardmade anupfront payment to us in the formof equity and paidus $1million in
cash for the licensingof an antisense oligonucleotide drug targeting expressionof connective tissue growth factor, or CTGF, that is
activatedduring skin scarring following thewoundhealingprocess.
InDecember 2011, Pfizer Inc. acquiredExcaliard. To date, wehave received $6.5million andwe are eligible to receive up
to an additional $8.4million inpayments upon achievement of variousmilestones associatedwith the clinical and commercial
progress of EXC 001. In addition, assumingPfizer Inc. successfully develops and commercializes EXC001, wemay receive
substantivemilestone payments totalingup to$47.7million for the achievement of keydevelopment and regulatorymilestones,
includingup to$7.7million for the achievement of developmentmilestones andup to$40million for the achievement of regulatory
milestones.Wewill earn the nextmilestone payment of $1.5millionupon initiation of aPhase 3 study for EXC001.We are also
eligible to receive royalties on anyproduct sales of EXC001.
At December 31, 2013, we owned no equity inExcaliard. During 2013, 2012 and2011, we received$844,000, $1.3million
and $4.4million, respectively, fromPfizer Inc. inpayments related to the acquisitionof Excaliard and the advancement of EXC001,
whichwe recorded as investment gains. We didnot earn any revenue during2013, 2012 and2011 fromour relationshipwith
Excaliard.
