Collaboration Agreements (Tables)

12 Months Ended

Dec. 31, 2013

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Substantive Development Milestone Payments Eligible to Receive under Astellas Collaboration Agreement

The triggering events for 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 2^nd line prostate cancer patients; (b) first approval of a marketing application in the first major country in Europe with a label encompassing 2^nd line prostate cancer patients; (c) first approval of a marketing application in Japan with a label encompassing 2^nd 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 2^nd line patients.

(5)	These milestone payments totaling $78.0 million have been received as of December 31, 2013.

Schedule of Milestone Payments in Sales

The triggering events for the remaining $295.0 million in sales milestone payments the Company is eligible to receive are as follows:


Annual Global Net Sales in a Calendar Year		Milestone Payment⁽¹⁾
$800 million		$50 million
$1.2 billion		$70 million
$1.6 billion		$175 million

(1)	Each milestone shall only be paid once during the term of the Astellas Collaboration Agreement.

Schedule of Collaboration Revenue

Collaboration revenue was as follows:


	Years Ended December 31,
	2013		2012		2011
Collaboration revenue:
Attributable to U.S. XTANDI sales	$	196,208	$	35,752	$	—
Attributable to ex-U.S. XTANDI sales		6,338		—		—
Attributable to up-front and milestone payments		70,396		145,944		60,389

Total	$	272,942	$	181,696	$	60,389

Schedule of Collaboration Revenue Attributable to Sales

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


	Years Ended December 31,
	2013			2012
Net U.S. sales (as reported by Astellas)	$	392,415		$	71,504
Shared U.S. development and commercialization costs		(241,106	)		(88,908	)

Pre-tax U.S. profit (loss)	$	151,309		$	(17,404	)

Medivation’s share of pre-tax U.S. profit (loss)	$	75,655		$	(8,702	)
Reimbursement of Medivation’s share of shared U.S. costs		120,553			44,454

Collaboration revenue attributable to U.S. XTANDI sales	$	196,208		$	35,752

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

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


	Years Ended December 31,
	2013		2012		2011
Collaboration revenue attributable to up-front and milestone payments:
From Astellas	$	70,396	$	73,914	$	24,374
From Pfizer		—		72,030		36,015

Total	$	70,396	$	145,944	$	60,389

Deferred Revenue

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


	December 31,
	2013		2012
Current	$	16,931	$	33,862
Long-term		—		8,465

Total	$	16,931	$	42,327

Development and Commercialization Cost-Sharing Payments

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


	Years Ended December 31,
	2013		2012		2011
Development cost-sharing payments from Astellas	$	46,594	$	47,473	$	44,285
Development cost-sharing payments from Pfizer		—		1,740		12,365

Total	$	46,594	$	49,213	$	56,650

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


	Years Ended December 31,
	2013			2012			2011
Commercialization cost-sharing payments to Astellas	$	(11,973	)	$	(3,437	)	$	(472	)
Commercialization cost-sharing payments from Pfizer		—			9			32

Total	$	(11,973	)	$	(3,428	)	$	(440	)