Development And License Agreements	9 Months Ended
Sep. 30, 2011
Development And License Agreements
Development And License Agreements	Note 13. Development and License Agreements Agreements with Fenwal, Related Party In December 2009, the Company and Baxter International Inc. ("Baxter") entered into a settlement agreement regarding disputed amounts for certain transition services provided in 2006 by Baxter in conjunction with the transfer of commercialization rights to the Company. In consideration for agreeing to the settlement, with both parties waiving all rights and obligations, the Company agreed to pay Baxter $0.5 million, which was recorded as a payable on its December 31, 2009 consolidated balance sheet, and subsequently paid by the Company in 2010. As a result of Baxter's sale of its transfusion therapies division in 2007 to Fenwal, the Company has certain agreements with Fenwal which require the Company to pay royalties on future INTERCEPT Blood System product sales at royalty rates that vary by product: 10% of product sales for the platelet system, 3% of product sales for the plasma system and 5% of product sales for the red blood cell system, and 6.5% on sales of illuminators. During the three months ended September 30, 2011 and 2010, the Company made royalty payments to Fenwal of $0.6 million and $0.4 million, respectively, and $1.6 million and $1.3 million during the nine months ended September 30, 2011 and 2010, respectively. At September 30, 2011 and December 31, 2010, the Company owed royalties to Fenwal of $0.6 million and $0.5 million, respectively. In December 2008, the Company extended its agreement with Fenwal to manufacture finished disposable kits for the platelet and plasma systems through December 31, 2013. Under the amended manufacturing agreement, the Company pays Fenwal a set price per kit, which is established annually, plus a fixed surcharge per kit. In addition, volume driven manufacturing overhead is to be paid or refunded if actual manufacturing volumes are lower or higher than the estimated production volumes. The Company made payments to Fenwal of $2.1 million and $2.2 million relating to the manufacturing of the Company products during the three months ended September 30, 2011, and 2010, respectively, and $8.5 million and $6.7 million during the nine months ended September 30, 2011 and 2010, respectively. At both September 30, 2011 and December 31, 2010, the Company owed Fenwal $2.3 million for INTERCEPT disposable kits manufactured. Cooperative Agreements with the United States Armed Forces Since February 2001, the Company has received awards under cooperative agreements with the Army Medical Research Acquisition Activity division of the Department of Defense. The Company received these awards in order to develop its pathogen inactivation technologies for the improved safety and availability of blood that may be used by the United States Armed Forces for medical transfusions. Under the conditions of the agreements, the Company is conducting research on the inactivation of infectious pathogens in blood, including unusual viruses, bacteria and parasites that are of concern to the United States Armed Forces. This funding supports advanced development of the Company's red blood cell system. The Company recognized $1.5 million and $0.5 million of revenue under these agreements during the three months ended September 30, 2011, and 2010, respectively, and $1.9 million and $0.9 million for the nine months ended September 30, 2011 and 2010, respectively.

Development And License Agreements

9 Months Ended

Sep. 30, 2011

Note 13. Development and License Agreements

Agreements with Fenwal, Related Party

In December 2009, the Company and Baxter International Inc. ("Baxter") entered into a settlement agreement regarding disputed amounts for certain transition services provided in 2006 by Baxter in conjunction with the transfer of commercialization rights to the Company. In consideration for agreeing to the settlement, with both parties waiving all rights and obligations, the Company agreed to pay Baxter $0.5 million, which was recorded as a payable on its December 31, 2009 consolidated balance sheet, and subsequently paid by the Company in 2010.

As a result of Baxter's sale of its transfusion therapies division in 2007 to Fenwal, the Company has certain agreements with Fenwal which require the Company to pay royalties on future INTERCEPT Blood System product sales at royalty rates that vary by product: 10% of product sales for the platelet system, 3% of product sales for the plasma system and 5% of product sales for the red blood cell system, and 6.5% on sales of illuminators. During the three months ended September 30, 2011 and 2010, the Company made royalty payments to Fenwal of $0.6 million and $0.4 million, respectively, and $1.6 million and $1.3 million during the nine months ended September 30, 2011 and 2010, respectively. At September 30, 2011 and December 31, 2010, the Company owed royalties to Fenwal of $0.6 million and $0.5 million, respectively.

In December 2008, the Company extended its agreement with Fenwal to manufacture finished disposable kits for the platelet and plasma systems through December 31, 2013. Under the amended manufacturing agreement, the Company pays Fenwal a set price per kit, which is established annually, plus a fixed surcharge per kit. In addition, volume driven manufacturing overhead is to be paid or refunded if actual manufacturing volumes are lower or higher than the estimated production volumes. The Company made payments to Fenwal of $2.1 million and $2.2 million relating to the manufacturing of the Company products during the three months ended September 30, 2011, and 2010, respectively, and $8.5 million and $6.7 million during the nine months ended September 30, 2011 and 2010, respectively. At both September 30, 2011 and December 31, 2010, the Company owed Fenwal $2.3 million for INTERCEPT disposable kits manufactured.

Cooperative Agreements with the United States Armed Forces

Since February 2001, the Company has received awards under cooperative agreements with the Army Medical Research Acquisition Activity division of the Department of Defense. The Company received these awards in order to develop its pathogen inactivation technologies for the improved safety and availability of blood that may be used by the United States Armed Forces for medical transfusions. Under the conditions of the agreements, the Company is conducting research on the inactivation of infectious pathogens in blood, including unusual viruses, bacteria and parasites that are of concern to the United States Armed Forces. This funding supports advanced development of the Company's red blood cell system. The Company recognized $1.5 million and $0.5 million of revenue under these agreements during the three months ended September 30, 2011, and 2010, respectively, and $1.9 million and $0.9 million for the nine months ended September 30, 2011 and 2010, respectively.

- Definition

Tabular disclosure of significant agreements under research and development arrangements accounted for as a contract to perform research and development for others (including royalty arrangements, purchase provisions, license agreements, and commitments to provide additional funding), aggregated by similar arrangements or individually if necessary to understand the effects on the financial statements. Include also the amount of costs incurred under a research and development arrangement accounted for as a contract to perform research and development for others. Aggregation of similar arrangements by type may be appropriate. Include also the amount of compensation earned (contract income) under a research and development arrangement accounted for as a contract to perform research and development for others. Aggregation of similar arrangements by type may be appropriate.

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