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In connectionwith the license, Achaogen issued tous $1.5millionofAchaogenSeriesAPreferredStock. Since early2009,
we have received$3million fromAchaogen, $500,000ofwhichwas inAchaogen securities, asAchaogenhas advanced plazomicin in
development. In addition, assumingAchaogen successfully develops and commercializes the first twodrugs under our agreement, we
may receive payments totalingup to$46.3million for the achievement of key clinical, regulatory and sales events. Wewill earn the
next payment of $4million ifAchaogen initiates a Phase 3 study for plazomicin.We are also eligible to receive royalties on sales of
drugs resulting from the program. Achaogen is solely responsible for the continueddevelopment of plazomicin.
During2013, 2012 and2011, we didnot earn any revenue fromour relationshipwithAchaogen. AtDecember 31, 2013 and
2012, we owned less than10percent ofAchaogen’s equity.
AlnylamPharmaceuticals, Inc.
InMarch2004, we entered into a strategic alliancewithAlnylam to develop and commercializeRNAi therapeutics. Under
the terms of the agreement, we exclusively licensed toAlnylamour patent estate relating to antisensemotifs andmechanisms and
oligonucleotide chemistry for double-strandedRNAi therapeutics in exchange for a $5million technology access fee, participation in
fees fromAlnylam’s partneringprograms, aswell as futuremilestone and royaltypayments fromAlnylam. InAugust 2012, we
expanded the license to include using the double-strandedRNAi technology for agricultural products. For eachdrugAlnylam
develops under this alliance, wemay receive up to $3.4million in substantivemilestonepayments, including up to$1.1million for the
achievement of developmentmilestones and$2.3million for regulatorymilestones. In2013, we earned a $750,000milestone payment
whenAlnylam initiated aPhase 3 study for a drug targetingTTR. Wewill earn the nextmilestone payment of $375,000 ifAlnylam
initiates a Phase 1 study for a drug inAlnylam’s pipeline.We retained rights to a limitednumber of double-strandedRNAi therapeutic
targets and all rights to single-strandedRNAi, or ssRNAi, therapeutics.
In turn, Alnylamnonexclusively licensed tous its patent estate relating to antisensemotifs andmechanisms and
oligonucleotide chemistry to research, develop and commercialize ssRNAi therapeutics and to researchdouble-strandedRNAi
compounds.We also received a license todevelop and commercialize double-strandedRNAi drugs targeting a limited number of
therapeutic targets on a nonexclusive basis. Ifwe developor commercialize anRNAi-baseddrugusingAlnylam’s technology, wewill
payAlnylammilestone payments and royalties. For eachdrug, the potentialmilestone payments toAlnylam total $3.4million, which
wewill pay ifwe achieve specifieddevelopment and regulatory events. Todate, we donot have anRNAi-baseddrug in clinical
development. OurAlnylam alliance provides uswith an opportunity to realize substantial value fromour pioneeringwork in antisense
mechanisms andoligonucleotide chemistry and is an example of our strategy toparticipate in all areas ofRNA-targetingdrug
discovery.
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 ofUC andother inflammatorydiseases. Atlantic Pharmaceuticals is
initially developing alicaforsen for pouchitis, aUC indication, followedbyUC andother inflammatorydiseases. In exchange for the
exclusive, worldwide license to alicaforsen, we received a $2million upfront payment fromAtlantic Pharmaceuticals in the formof
equity.
