From last 10Q -
Alimera
Under the collaboration agreement with Alimera, as amended in March 2008 (the “Alimera Agreement”), the Company licensed to Alimera the rights to
develop, market and sell certain product candidates, including ILUVIEN, and Alimera assumed all financial responsibility for the development of licensed
products. In addition, the Company is entitled to receive 20% of any net profits (as defined) on sales of each licensed product (including ILUVIEN) by Alimera,
measured on a quarter-by-quarter and country-by-country basis. Alimera may recover 20% of previously incurred and unapplied net losses (as defined) for
commercialization of each product in a country, but only by an offset of up to 4% of the net profits earned in that country each quarter, reducing the Company’s net
profit share to 16% in each country until those net losses are recouped. If Alimera sublicenses commercialization in any country, the Company is entitled to 20% of
royalties and 33% of non-royalty consideration received by Alimera, less certain permitted deductions. The Company is also entitled to reimbursement of certain
patent maintenance costs with respect to the patents licensed to Alimera.
Because the Company has no remaining performance obligations under the Alimera Agreement, all amounts received from Alimera are recognized as
revenue upon receipt or at such earlier date, if applicable, on which any such amounts are both fixed and determinable and reasonably assured of collectability.
Revenue under the Alimera Agreement totaled $35,000 and $70,000 for the three months ended March 31, 2016 and 2015, respectively, and $226,000 and
$25.1 million for the nine months ended March 31, 2016 and 2015, respectively. These revenues consisted of $157,000 of non-royalty sublicense consideration
earned during the three months ended September 30, 2015 and a $25.0 million milestone earned as a result of the FDA approval of ILUVIEN during the three
months ended September 30, 2014, with the remainder having consisted principally of patent fee reimbursements.
