Contractual Agreement Revenue

6 Months Ended

Jun. 30, 2016

Contractual Agreement Revenue

Contractual Agreement Revenue

4.     Contractual Agreement Revenue

In February 2016, we entered into exclusive licensing and manufacturing supply agreements with Wanbang Biopharmaceutical Co., Ltd. (“Wanbang”), a subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., for the rights to commercialize the Company’s Triferic® and Calcitriol drugs for ESRD patients, that also includes new therapeutic indications for Triferic®, in the People’s Republic of China, (the “Wanbang Agreement”).

Under the terms of the Wanbang Agreement, we received an upfront payment of $4 million which we are recognizing over the term of the agreement.  Rockwell may also receive milestone payments upon achievement of certain regulatory milestones in the future.

Contingent upon and following regulatory approval of each drug in connection with the Wanbang Agreement, Rockwell would receive ongoing earnings from product sales which would be recognized in the period that the sales are reported.  In addition, Rockwell could also receive sales milestone payments or additional regulatory milestone payments.