andAlnylam each obtained exclusive license rights to two therapeutic programs. Alnylam granted us an
exclusive, royalty-bearing license to its chemistry, RNA-targeting mechanism and target-specific intellectual
property for oligonucleotide therapeutics against two targets, Factor XI and apolipoprotein (a). In exchange, we
grantedAlnylam an exclusive, royalty-bearing license to our chemistry, RNA-targeting mechanism and
target-specific intellectual property for oligonucleotide therapeutics against two targets, antithrombin and
aminolevulinic acid synthase-1. Alnylam also granted us a royalty-bearing, non-exclusive license to new platform
technology arising fromMay 2014 throughApril 2019 for single-stranded antisense therapeutics. In turn, we
grantedAlnylam a royalty-bearing, non-exclusive license to new platform technology arising fromMay 2014
throughApril 2019 for double-stranded RNAi therapeutics.
During 2014, 2013 and 2012, we earned revenue from our relationship withAlnylam totaling $9.9 million,
$1.5 million and $2.7 million, respectively.
Antisense Therapeutics Limited
In December 2001, we licensedATL1102 toATL, anAustralian company publicly traded on theAustralian
Stock Exchange. ATL is developingATL1102 for the treatment of multiple sclerosis. In addition, ATL is currently
developingATL1103 for growth and sight disorders. We are eligible to receive royalties on sales of ATL1102 and
ATL1103. We may also receive a portion of the fees ATL receives if it licenses ATL1102 or ATL1103. At
December 31, 2014 and 2013, we owned less than 10 percent of ATL’s equity. During 2014, 2013 and 2012, we
did not earn any revenue from our relationship withATL.
Atlantic Pharmaceuticals Limited, formerly Atlantic Healthcare (UK) Limited
InMarch 2007, we licensed alicaforsen toAtlantic Pharmaceuticals, a UK-based specialty pharmaceutical
company founded in 2006, which is developing alicaforsen for the treatment of ulcerative colitis, or UC, and
other inflammatory diseases. Atlantic Pharmaceuticals is initially developing alicaforsen for pouchitis, a UC
indication, followed by UC and other inflammatory diseases. In exchange for the exclusive, worldwide license to
alicaforsen, we received a $2 million upfront payment fromAtlantic Pharmaceuticals in the form of equity.
Under the agreement, we could receive milestone substantive payments totaling up to $1.4 million for the
achievement of regulatory milestones for multiple indications. We will earn the next milestone payment of
$0.6 million if Atlantic Pharmaceuticals submits an NDA for alicaforsen with the FDA. In 2010, Atlantic
Pharmaceuticals began supplying alicaforsen under international named patient supply regulations for patients
with inflammatory bowel disease, or IBD, for which we receive royalties.
In 2010 and 2013, we agreed to sell Atlantic Pharmaceuticals alicaforsen drug substance in return for shares
of Atlantic Pharmaceuticals’ common stock. Additionally, in 2013 we agreed to receive equity for the royalties
that we will earn fromAtlantic Pharmaceuticals. We recorded a full valuation allowance for all of the equity we
received fromAtlantic Pharmaceuticals, including the upfront payment, because realization of value from the
equity is uncertain. At December 31, 2014 and 2013, we owned approximately 12 percent of Atlantic
Pharmaceuticals’ equity. We earned $0.7 million related to royalties and sales of drug substance in 2013. Because
the payments were made in equity, we did not record any revenue. During 2014 and 2012, our revenue was
negligible from our relationship withAtlantic Pharmaceuticals.
Excaliard Pharmaceuticals, Inc., a wholly owned subsidiary of Pfizer Inc.
In November 2007, we entered into a collaboration with Excaliard to discover and develop antisense drugs
for the local treatment of fibrotic diseases, including scarring. We granted Excaliard an exclusive worldwide
license for the development and commercialization of certain antisense drugs. Excaliard made an upfront
payment to us in the form of equity and paid us $1 million in cash for the licensing of an antisense
oligonucleotide drug targeting expression of connective tissue growth factor, or CTGF, that is activated during
skin scarring following the wound healing process.
In December 2011, Pfizer Inc. acquired Excaliard. To date, we have received $6.5 million in contingent
payments fromPfizer and we are eligible to receive up to an additional $8.4 million in contingent payments
upon achievement of various milestones associated with the clinical and commercial progress of EXC 001. In
addition, if Pfizer Inc. successfully develops and commercializes EXC 001, we may receive substantive milestone
payments totaling up to $47.7 million for the achievement of key development and regulatory milestones,
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