Collaboration Agreement (Tables)

9 Months Ended

Sep. 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 as of September 30, 2014 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

⁾

⁽⁷

⁾

The first major country in Europe

⁽⁵

⁾

⁽⁷

⁾

⁽⁷

⁾

Japan

⁽⁵

⁾

⁽⁷

⁾

⁽⁷

⁾

First approval of a marketing application in:

The U.S.

⁽⁵

⁾

⁽⁸

⁾

⁽⁸

⁾

The first major country in Europe

⁽⁵

⁾

15 million

30 million

Japan

⁽⁶

⁾

15 million

⁽⁹⁾

30 million

⁽⁹⁾

(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 payment has been received.

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

(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.

(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.

(8)	These milestones totaling $90.0 million were earned and recognized as collaboration revenue during the third quarter of 2014 and are included in receivable from collaboration partner on the consolidated balance sheet at September 30, 2014.

(9)	These milestones totaling $45.0 million were earned in October 2014 and will be recognized as collaboration revenue during the fourth quarter of 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 September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Collaboration revenue:
Related to U.S. XTANDI sales	$	90,723	$	54,244	$	224,814	$	133,134
Related to ex-U.S. XTANDI sales		15,522		1,551		31,245		2,033
Related to upfront and milestone payments		94,233		4,232		179,698		41,163

Total	$	200,478	$	60,027	$	435,757	$	176,330

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

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


	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
U.S. XTANDI sales (as reported by Astellas)	$	181,446		$	108,487		$	449,629		$	266,267
Shared U.S. development and commercialization costs		(69,616	)		(58,901	)		(217,866	)		(178,002	)

Pre-tax U.S. profit	$	111,830		$	49,586		$	231,763		$	88,265

Medivation’s share of pre-tax U.S. profit	$	55,915		$	24,793		$	115,881		$	44,133
Reimbursement of Medivation’s share of shared U.S. costs		34,808			29,451			108,933			89,001

Collaboration revenue related to U.S. XTANDI sales	$	90,723		$	54,244		$	224,814		$	133,134

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 September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Development milestones earned	$	90,000	$	—	$	167,000	$	20,000
Amortization of deferred upfront and development milestones		4,233		4,232		12,698		21,163

Total	$	94,233	$	4,232	$	179,698	$	41,163