Quarterly report pursuant to Section 13 or 15(d)

Sublicense Fee Receivable and Sublicense Revenue

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Sublicense Fee Receivable and Sublicense Revenue
9 Months Ended
Dec. 31, 2016
Sublicense Fee Receivable And Sublicense Revenue  
Sublicense Fee Receivable and Sublicense Revenue

On December 9, 2016, we entered into an Exclusive License and Sublicense Agreement with BlueRock Therapeutics, LP, a next generation regenerative medicine company established in December 2016 by Bayer AG and Versant Ventures (BlueRock Therapeutics), pursuant to which BlueRock received exclusive rights to utilize certain technologies exclusively licensed by us from University Health Network (UHN) for the production of cardiac stem cells for the treatment of heart disease. We retained rights to cardiac stem cell technology licensed from UHN related to small molecule, protein and antibody drug discovery, drug rescue and drug development, including small molecules with cardiac regenerative potential, as well as small molecule, protein and antibody testing involving cardiac cells.

 

Under the BlueRock Therapeutics Agreement, we are entitled to receive an upfront payment of $1.25 million and we have the potential to receive additional milestone payments and royalties in the future, in the event certain performance-based milestones and commercial sales are achieved. At December 31, 2016, we had no further obligations under the BlueRock Therapeutics Agreement and, accordingly, we recorded a receivable for the $1.25 million upfront payment with a corresponding recognition of the sublicense revenue. We received the $1.25 million cash payment due under the BlueRock Therapeutics Agreement on January 5, 2017.

 

Also on December 9, 2016, we entered into a series of agreements with UHN pursuant to which we (i) executed two new exclusive patent license agreements related to certain cardiac stem cell technologies discovered by Dr. Gordon Keller, Director of UHN's McEwen Centre for Regenerative Medicine, under our Sponsored Research Agreement with Dr. Keller and UHN, originally executed on September 18, 2007 (the SRA); (ii) amended two exclusive cardiac stem cell technology patent license agreements previously entered into between us and UHN under the SRA; (iii) terminated the SRA to facilitate the BlueRock Therapeutics Agreement; and (iv) agreed to make a sublicense consideration payment to UHN with respect to the upfront payment we received under the BlueRock Therapeutics Agreement. All financial obligations related to the agreements with UHN, aggregating $233,400, were reflected in accounts payable at December 31, 2016.