Collaboration Agreements (Tables)

9 Months Ended

Sep. 30, 2013

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Substantive Development Milestone Payments Eligible to Receive under Astellas Collaboration Agreement

The remaining $257.0 million in development milestone payments the Company is eligible to receive under the Astellas Collaboration Agreement are as follows:

Milestone Event

4^th line prostate cancer
patients ⁽¹⁾

3^rd line prostate cancer
patients ⁽²⁾

2^nd line prostate cancer
patients ^{(3)
(4)}

First acceptance for filing of a marketing application in:

The U.S.

⁽⁵

⁾

10 million

15 million

The first major country in Europe

⁽⁵

⁾

5 million

10 million

Japan

⁽⁵

⁾

5 million

10 million

First approval of a marketing application in:

The U.S.

⁽⁵

⁾

30 million

60 million

The first major country in Europe

⁽⁵

⁾

15 million

30 million

Japan

15 million

30 million

⁽¹⁾

Defined as prostate cancer patients who meet each of the following three criteria: (a) prior treatment failure on either (i) one or more luteinizing hormone-releasing hormone, or LHRH, analog drugs or (ii) surgical castration; (b) prior treatment failure on one or more androgen receptor antagonist drugs; and (c) prior treatment failure on chemotherapy.

⁽²⁾

Defined as prostate cancer patients who meet each of the following three criteria: (a) prior treatment failure on either (i) one or more LHRH analog drugs or (ii) surgical castration; (b) prior treatment failure on one or more androgen receptor antagonist drugs; and (c) no prior exposure to chemotherapy for prostate cancer.

⁽³⁾	Defined as prostate cancer patients who meet each of the following two criteria: (a) prior treatment failure on either (i) one or more LHRH analog drugs or (ii) surgical castration; and (b) no prior treatment failure on one or more androgen receptor antagonist drugs.

⁽⁴⁾

An additional milestone payment of $7.0 million is payable upon the first to occur of: (a) first approval of a marketing application in the United States with a label encompassing 2nd line prostate cancer patients; (b) first approval of a marketing application in the first major country in Europe with a label encompassing 2nd line prostate cancer patients; (c) first approval of a marketing application in Japan with a label encompassing 2nd line prostate cancer patients; or (d) first patient dosed in a Phase 3 clinical trial other than the PREVAIL trial that is designed specifically to support receipt of marketing approval in 2nd line patients.

⁽⁵⁾	These milestone payments totaling $78.0 million have been received as of September 30, 2013.

Schedule of Collaboration Revenue

Collaboration revenue was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Collaboration revenue:
Attributable to U.S. XTANDI sales	$	54,244	$	7,056	$	133,134	$	7,056
Attributable to ex-U.S. XTANDI sales		1,551		—		2,033		—
Attributable to up-front and milestone payments		4,232		57,742		41,163		137,479

Total	$	60,027	$	64,798	$	176,330	$	144,535

Schedule of Collaboration Revenue Attributable to Sales

Collaboration revenue attributable to U.S. XTANDI sales was as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net U.S. sales (as reported by Astellas)	$	108,487		$	14,112		$	266,267		$	14,112
Shared U.S. development and commercialization costs		(58,901	)		(41,928	)		(178,002	)		(41,928	)

Pre-tax U.S. profit (loss)	$	49,586		$	(27,816	)	$	88,265		$	(27,816	)

Medivation’s share of pre-tax U.S. profit (loss)	$	24,793		$	(13,908	)	$	44,133		$	(13,908	)
Reimbursement of Medivation’s share of shared U.S. costs		29,451			20,964			89,001			20,964

Collaboration revenue attributable to U.S. XTANDI sales	$	54,244		$	7,056		$	133,134		$	7,056

Schedule of Collaboration Revenue Attributable to Up-Front and Milestone Payments

Collaboration revenue attributable to up-front and milestone payments were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Collaboration revenue attributable to up-front and milestone payments:
From Astellas	$	4,232	$	52,256	$	41,163	$	65,449
From Pfizer		—		5,486		—		72,030

Total	$	4,232	$	57,742	$	41,163	$	137,479

Deferred Revenue

Deferred revenue under the Astellas Collaboration Agreement consisted of the following:


	September 30, 2013		December 31, 2012
Current	$	16,931	$	33,862
Long-term		4,233		8,465

Total	$	21,164	$	42,327

Development and Commercialization Cost-Sharing Payments

The following table summarizes the reductions in R&D expenses related to development cost-sharing payments:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Development cost-sharing payments from Astellas	$	13,070	$	11,003	$	31,617	$	39,131
Development cost-sharing payments from Pfizer		—		51		—		1,740

Total	$	13,070	$	11,054	$	31,617	$	40,871

The following table summarizes the (increases) reductions in SG&A expenses related to commercialization cost-sharing payments:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Commercialization cost-sharing payments to Astellas	$	(1,812	)	$	(1,187	)	$	(10,388	)	$	(1,857	)
Commercialization cost-sharing payments from Pfizer		—			—			—			9

Total	$	(1,812	)	$	(1,187	)	$	(10,388	)	$	(1,848	)