Collaboration Agreement (Tables)

6 Months Ended

Jun. 30, 2014

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Potential Development Milestone Payments

The triggering events for the remaining 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⁾

⁽⁷⁾

The first major country in Europe

⁽⁵⁾

⁽⁷⁾

Japan

⁽⁵⁾

⁽⁷⁾

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

⁽⁶⁾

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. This milestone payment was earned and recognized as collaboration revenue during the second quarter of 2014 and has been received as of June 30, 2014.

(5)	These milestones totaling $78.0 million were earned and recognized as collaboration revenue prior to 2014 and payments have been received as of June 30, 2014.

(6)	This milestone of $15.0 million was earned and recognized as collaboration revenue during the first quarter of 2014 and payment has been received as of June 30, 2014.

(7)	These milestones totaling $55.0 million were earned and recognized as collaboration revenue during the second quarter of 2014 and payments have been received as of June 30, 2014.

Schedule of Potential Sales Milestone Payments

The triggering events for the remaining 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:


	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Collaboration revenue:
Related to U.S. XTANDI sales	$	71,866	$	41,201	$	134,091	$	78,890
Related to ex-U.S. XTANDI sales		9,992		482		15,723		482
Related to upfront and milestone payments		66,232		28,466		85,465		36,931

Total	$	148,090	$	70,149	$	235,279	$	116,303

Schedule of Collaboration Revenue Related to U.S. XTANDI Sales

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net U.S. sales (as reported by Astellas)	$	143,732		$	82,402		$	268,183		$	157,780
Shared U.S. development and commercialization costs		(70,543	)		(61,431	)		(148,250	)		(119,101	)

Pre-tax U.S. profit	$	73,189		$	20,971		$	119,933		$	38,679

Medivation’s share of pre-tax U.S. profit	$	36,594		$	10,486		$	59,966		$	19,340
Reimbursement of Medivation’s share of shared U.S. costs		35,272			30,715			74,125			59,550

Collaboration revenue related to U.S. XTANDI sales	$	71,866		$	41,201		$	134,091		$	78,890

Schedule of Collaboration Revenue Related to Upfront and Milestone Payments

Collaboration revenue related to upfront and milestone payments from Astellas was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Development milestones earned	$	62,000	$	20,000	$	77,000	$	20,000
Amortization of deferred upfront and development milestones		4,232		8,466		8,465		16,931

Total	$	66,232	$	28,466	$	85,465	$	36,931