)

Licenses, Royalty Collaborative and Contractual Arrangements

Royalty agreements

The Company entered into a royalty-bearing research and license agreement with

GlaxoSmithKline (“GSK”) in

1990

for the development and commercialization of zanamivir, a neuraminidase inhibitor (“NI”) marketed by GSK as Relenza® to treat influenza. Under the terms of the agreement, the Company licensed zanamivir to GSK on an exclusive, worldwide basis and has been entitled to receive royalty payments of

of GSK's annual net sales of Relenza

in the U.S., Europe, Japan and certain other countries as well as

10%

of GSK's annual net sales of Relenza

in Australia, New Zealand, South Africa and Indonesia. Most of the Company’s Relenza

patents have expired and the only substantial remaining intellectual property related to the Relenza

patent portfolio is scheduled to expire in

July

2019

in Japan.

The Company also generates royalty revenue from the sale of Inavir

(laninamivir octanoate or LANI) in Japan, pursuant to a collaboration and license agreement and a related commercialization agreement (collectively, the “Inavir License Agreement”) with Daiichi Sankyo. In

September

2010,

Inavir

was approved for sale by the Japanese Ministry of Health and Welfare for the treatment of influenza in adults and children. Under the Inavir License Agreement, the Company currently receives a

royalty on net sales of Inavir

in Japan and is eligible to earn sales milestone payments. Under the Inavir License Agreement, the Company and Daiichi Sankyo have cross-licensed the world-wide rights to develop and commercialize the related intellectual property, and have agreed to share equally in any royalties, license fees, or milestone or other payments received from any

third

party licenses outside of Japan. Patents on the composition of matter for LANI in Japan generally expire in

2024.

April

2016,

the Company entered into a Royalty Interest Acquisition Agreement (“Agreement”) with HCRP. Under the Agreement, HCRP made a

$20

million cash payment to the Company in consideration for acquiring from the Sellers certain royalty rights (“Royalty Rights”) related to the approved product Inavir

in the Japanese market. The Royalty Rights were obtained pursuant to the Inavir License Agreement.

The following tables summarize the key components of the Company

’s revenues (in millions):

	Three Months Ended December 31 ,
	2016		2015
	(in millions)
Royalty revenue - Relenza ®	$	1.5	$	1.0
- Inavir ®		-		0.7
Non-cash royalty revenue related to the sale of future royalties		2.3		-
Total revenue	$	3.8	$	1.7

	Six Months Ended December 31 ,
	2016		2015
	(in millions)
Royalty revenue - Relenza ®	$	1.6	$	2.7
- Inavir ®		-		0.7
Non-cash royalty revenue related to the sale of future royalties		2.3		-
Total revenue	$	3.9	$	3.4

Collaborative and contract arrangements

July

2016,

the Company entered into an exclusive, worldwide license for RSV replication inhibitors intellectual property with Georgia State University Research Foundation (“GSURF”) in exchange for an upfront fee, future milestone payments and royalties on future net sales of any products that utilize the underlying RSV intellectual property. The Company has an obligation to make a minimum payment of

$10,000

to GSURF annually until the license agreement expires or is terminated. The Company also entered into a

two

year sponsored research agreement with GSURF for annual sponsored research payments.

In connection with the Company

’s

BTA585

clinical trial, a Clinical Research Organization (“CRO”), engaged by the Company to provide certain services for this trial, notified the Company of its intent to explore additional compensation due to a previous delay in the trial. In

December

2016,

the Company and the CRO agreed to a settlement and the Company’s insurance carrier agreed to reimburse the Company for the amount of the settlement, less its deductible.