Note 3 — Revenue
The Company has two contracts with customers: a collaboration and license agreement with GlaxoSmithKline (“GSK”) and a collaboration agreement with Astellas.
Revenue comprises the following categories (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development revenue
|
|
$
|
1,203
|
|
$
|
1,193
|
|
$
|
4,732
|
|
$
|
2,456
|
|
|
$
|
1,203
|
|
$
|
1,193
|
|
$
|
4,732
|
|
$
|
2,456
|
The aggregate amount of the transaction price that is allocated to performance obligations that are unsatisfied or partially satisfied under the agreement as of September 30, 2021 was $76,322,000. Of this amount, $15,000,000 is allocated to the rights granted for each of the two independent Astellas targets, which will be recognised at a point-in-time upon commencement of the licenses in the event of nomination of the targets. The remaining amounts relate to our co-development with Astellas and GSK, which will be recognized as development progresses.
Future development, regulatory and sales milestones under both agreements are not considered probable as of September 30, 2021 and have not been included in the transaction price. Reimbursement of the research funding over the co-development period under the Astellas agreement is variable consideration and included in the transaction price as of September 30, 2021 to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur.
The Company received a milestone payment of $4.2 million in the nine months ended September 30, 2021 following achievement of a development milestone for the third target under the GSK Collaboration and License Agreement. As a result of the inclusion of this amount in the transaction price, $1,029,000 of revenue was recognized in the three and nine months ended September 30, 2021 from performance obligations partially satisfied in previous periods.
Of the revenue recognized in the nine months ended September 30, 2021, $1,056,000 was included in the deferred income balance at January 1, 2021.
On September 3, 2021, the Company entered into a Strategic Collaboration and License Agreement with Genentech, Inc. and F. Hoffman-La Roche Ltd, which became effective on October 19, 2021 upon expiry or termination of all applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The agreement is further described in Note 14.
Note 4 — Loss per share
The dilutive effect of 115,924,296 and 91,263,299 stock options outstanding as of September 30, 2021 and 2020 respectively have been excluded from the diluted loss per share calculation for the three and nine months ended September 30, 2021 and 2020 because they would have an antidilutive effect on the loss per share for the period.
Note 5 — Accumulated other comprehensive loss
The Company reports foreign currency translation adjustments and the foreign exchange gain or losses arising on the revaluation of intercompany loans of a long-term investment nature within Other comprehensive (loss) income. Unrealized gains and losses on available-for-sale debt securities are also reported within Other comprehensive (loss) income until a gain or loss is realized, at which point they are reclassified to Other (expense) income, net in the Condensed Consolidated Statement of Operations.