The Ludwig Institute; Center for Neurological Studies
In October 2005, we entered into a collaboration agreement with the Ludwig Institute, the Center for
Neurological Studies and researchers from these institutions to discover and develop antisense drugs in the areas
of ALS and other neurodegenerative diseases. Under this agreement, we agreed to pay the Ludwig Institute and
Center for Neurological Studies modest milestone payments and royalties on any antisense drugs resulting from
the collaboration.
Intellectual Property Sale and LicensingAgreements
We have a broad patent portfolio covering our products and technologies. We believe our patent estate
represents the largest and most valuable nucleic acid therapeutics-oriented patent estate in the pharmaceutical
industry. While the principal purpose of our intellectual property portfolio is to protect our products and those of
our pharmaceutical and satellite company partners described above, our intellectual property is a strategic asset
that we are exploiting to generate near-term revenues and that we expect will also provide us with revenue in the
future. We have an active intellectual property sales and licensing program in which we sell or license aspects of
our intellectual property to companies. Through this program, we also license our non-antisense patents. To date,
we have generated nearly $420 million from our intellectual property sale and licensing program that helps
support our internal drug discovery and development programs.
Sales of Intellectual Property
Abbott Molecular Inc.
In January 2009, we sold our former subsidiary, Ibis Biosciences, toAbbott Molecular Inc., or AMI,
pursuant to a stock purchase agreement for a total acquisition price of $215 million plus the earn out payments
described below.
Under the stock purchase agreement, we are eligible to receive earn out payments fromAMI equal to a
percentage of Ibis’ revenue related to sales of Ibis systems, whichAMI launched in 2014 as IRIDICA, including
instruments, assay kits and successor products. Once cumulative net sales reach $140 million, and through
December 31, 2025, we are eligible to earn out payments in any year that net sales exceed $50 million for the
applicable year. The earn out payments will equal five percent of Ibis’ cumulative net sales over $140 million
and up to $2.1 billion, and three percent of Ibis’ cumulative net sales over $2.1 billion. AMI may reduce these
earn out payments from five percent to as low as 2.5 percent and from three percent to as low as 1.5 percent,
respectively, upon the occurrence of certain events. During 2014, 2013 and 2012, we did not earn any revenue
from our relationship withAMI.
In-Licensing Arrangements
Idera Pharmaceuticals, Inc., formerly Hybridon, Inc.
We have an agreement with Idera under which we acquired an exclusive license to all of Idera’s antisense
chemistry and delivery technology related to our second generation antisense drugs and to double-stranded
siRNA therapeutics. Idera retained the right to practice its licensed antisense patent technologies and to
sublicense its technologies to collaborators under certain circumstances. In addition, Idera received a
non-exclusive license to our suite of RNase H patents.
University of Massachusetts
We have a license agreement with the University of Massachusetts under which we acquired an exclusive
license to the University of Massachusetts’ patent rights related to ISIS-SMN
Rx
. If we successfully develop and
commercialize a drug incorporating the technology we licensed from the University of Massachusetts, we will
pay a milestone payment to the University of Massachusetts of $0.3 million for the achievement of a key
regulatory milestone. In addition, we will pay the University of Massachusetts a portion of any sublicense
revenue we receive in consideration for sublicensing its technology, and a royalty on sales of ISIS-SMN
Rx
in the
United States if our product incorporates the technology we licensed from the University of Massachusetts.
Verva Pharmaceuticals Ltd.
We have a license agreement with Verva under which we acquired an exclusive license to Verva’s antisense
patent rights related to ISIS-FGFR4
Rx
. If we successfully develop and commercialize a drug incorporating the
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