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Manufacturing, Laboratory and Office Facility
6 Months Ended
Jun. 30, 2012
Manufacturing, Laboratory and Office Facility

Note 8 – Manufacturing, Laboratory and Office Facility

 

In November 2011, the Company entered into lease agreements, under which the Company leases its new manufacturing, laboratory and office space in Gaithersburg, Maryland. The lease agreements provide that, among other things, as of January 1, 2012, the Company sublease from the current facility tenant, and subsequently lease directly from the landlord, approximately 74,000 total square feet, with rent payments for such space to the landlord commencing April 1, 2014. Under the terms of the arrangement, the Landlord will provide the Company with a tenant improvement allowance of $2.5 million and an additional tenant improvement allowance of $3 million dollars (collectively, the “Improvement Allowance”). The additional tenant improvement allowance is to be paid back to the Landlord over the remaining term of the lease agreement. During the six months ended June 30, 2012, the Company was funded $2.1 million under the Improvement Allowance. In addition, the Company purchased laboratory equipment under an agreement with the then current facility tenant. The Company is currently renovating the new facility and has started remarketing the Rockville, Maryland facility, which lease term ends January 31, 2017.