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REVENUE RECOGNITION AND COLLABORATIVE ARRANGEMENTS
12 Months Ended
Dec. 31, 2020
REVENUE RECOGNITION AND COLLABORATIVE ARRANGEMENTS  
REVENUE RECOGNITION AND COLLABORATIVE ARRANGEMENTS

3.  REVENUE RECOGNITION AND COLLABORATIVE ARRANGEMENTS

Revenue from Collaborative Arrangements

Net revenue recognized under our GSK Agreements was as follows:

 

Year Ended December 31, 

(In thousands)

 

2020

    

2019

    

2018

Royalties from a related party - RELVAR/BREO

$

221,536

$

189,424

$

220,162

Royalties from a related party - ANORO

 

45,992

 

42,625

 

41,286

Royalties from a related party - TRELEGY

73,089

42,790

13,379

Total royalties from a related party

 

340,617

 

274,839

 

274,827

Less: amortization of capitalized fees paid to a related party

 

(13,823)

 

(13,823)

 

(13,823)

Royalty revenue

 

326,794

 

261,016

 

261,004

Strategic alliance  - MABA program

10,000

Total net revenue from GSK

$

336,794

$

261,016

$

261,004

LABA Collaboration

As a result of the launch and approval of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA® in the U.S., Japan and Europe, we paid milestone fees to GSK totaling $220.0 million during the year ended December 31, 2014. The milestone fees paid to GSK were recognized as capitalized fees paid to a related party, which are being amortized over their estimated useful lives commencing upon the commercial launch of the product. The amortization expense is recorded as a reduction to the royalties from GSK.

We are entitled to receive annual royalties from GSK on sales of RELVAR®/BREO® ELLIPTA® as follows: 15% on the first $3.0 billion of annual global net sales and 5% for all annual global net sales above $3.0 billion. Sales of single-agent LABA medicines and combination medicines would be combined for the purposes of this royalty calculation. For other products combined with a LABA from the LABA Collaboration, such as ANORO® ELLIPTA®, royalties are upward tiering and range from 6.5% to 10%.

We are also entitled to 15% of royalty payments made by GSK under its agreements originally entered into with us, and since assigned to TRC in connection with the Spin-Off, including TRELEGY® ELLIPTA®, which royalties are upward tiering and range from 6.5% to 10%.

2004 Strategic Alliance

During the year ended December 31, 2020, we recognized $10.0 million in revenue from a termination fee paid in connection with the termination of the Bifunctional Muscarinic Antagonist-Beta2 Agonist (“MABA”) program under the Strategic Alliance Agreement with GSK.