REVENUE	12 Months Ended
Dec. 31, 2012
REVENUE
REVENUE	(12) REVENUE A summary of the Company's significant revenue contracts and arrangements follows: GlaxoSmithKline plc (Glaxo) and Paul Royalty Fund II, L.P. (PRF) In 1997, the Company licensed its oral rotavirus strain to Glaxo and Glaxo assumed responsibility for all subsequent clinical trials and all other development activities. The Company's licensed-in the rotavirus strain that was used to develop Glaxo's Rotarix rotavirus vaccine in 1995 and owes a license fee of 30% to Cincinnati Children's Hospital Medical Center (CCH) on net royalties received from Glaxo. In May 2005, the Company entered into an agreement whereby an affiliate of PRF purchased a 70% interest in the net royalties the Company received on worldwide sales of Rotarix under the Glaxo Agreement. In December 2012, a U.S. patent for the Company's rotavirus strain that the Company licensed to Glaxo expired. The Glaxo agreement terminates automatically upon the expiration, lapse or invalidation of the last relevant patent right (patent or patent application) covered by the Glaxo agreement. The only remaining relevant patent right is a patent application in Mexico with a projected final expiry date in May 2013 which is under appeal. The PRF agreement provided for a normal expiry of the PRF agreement on December 12, 2012 except that the PRF agreement provides for an exclusive 120-day right of negotiation for extension in certain circumstances. The Company's retained interests in Rotarix net royalties which were not sold to PRF are recorded as product royalty revenue and a corresponding amount that is payable to CCH is recorded as royalty expense. Product royalty revenue and royalty expense related to the Company's retained interest in Rotarix was $10.8 million, $9.1 million and $6.4 million for the years ended December 31, 2012, 2011 and 2010, respectively. Pfizer Inc. (Pfizer) In April 2008, the Company and Pfizer entered into a License and Development Agreement under which Pfizer was granted an exclusive worldwide license to rindopepimut. Under the Pfizer agreement, Pfizer made an upfront payment to the Company of $40 million and made a $10 million equity investment in the Company. The Pfizer agreement also provided for reimbursement by Pfizer of all costs incurred by the Company in connection with the collaboration since the effective date. In November 2010, the Pfizer agreement was terminated and all rights to rindopepimut were returned to the Company. Pfizer did not provide a reason for termination. As a result of the termination, the Company recognized the remaining deferred revenue related to the Pfizer agreement to product development and licensing agreement revenue during the year ended December 31, 2010. The Company recorded $39.9 million in product development and licensing agreement revenue under the Pfizer agreement during the year ended December 31, 2010. The Company incurred and invoiced Pfizer reimbursable costs related to the Pfizer collaboration of $0.8 million for the year ended December 31, 2010. Since the termination of the Pfizer agreement, Pfizer is no longer funding the development of rindopepimut. In connection with the Pfizer agreement, the Company paid a total of $6.9 million in sublicense fees to Duke University and Thomas Jefferson University. As a result of the Pfizer termination, the Company recognized the remaining deferred costs related to the Pfizer agreement to royalty expense during year ended December 31, 2010. The Company recorded $5.7 million in royalty expense related to these deferred sublicense fees during the year ended December 31, 2010.

(12) REVENUE

A summary of the Company's significant revenue contracts and arrangements follows:

GlaxoSmithKline plc (Glaxo) and Paul Royalty Fund II, L.P. (PRF)

In 1997, the Company licensed its oral rotavirus strain to Glaxo and Glaxo assumed responsibility for all subsequent clinical trials and all other development activities. The Company's licensed-in the rotavirus strain that was used to develop Glaxo's Rotarix rotavirus vaccine in 1995 and owes a license fee of 30% to Cincinnati Children's Hospital Medical Center (CCH) on net royalties received from Glaxo. In May 2005, the Company entered into an agreement whereby an affiliate of PRF purchased a 70% interest in the net royalties the Company received on worldwide sales of Rotarix under the Glaxo Agreement.

In December 2012, a U.S. patent for the Company's rotavirus strain that the Company licensed to Glaxo expired. The Glaxo agreement terminates automatically upon the expiration, lapse or invalidation of the last relevant patent right (patent or patent application) covered by the Glaxo agreement. The only remaining relevant patent right is a patent application in Mexico with a projected final expiry date in May 2013 which is under appeal. The PRF agreement provided for a normal expiry of the PRF agreement on December 12, 2012 except that the PRF agreement provides for an exclusive 120-day right of negotiation for extension in certain circumstances.

The Company's retained interests in Rotarix net royalties which were not sold to PRF are recorded as product royalty revenue and a corresponding amount that is payable to CCH is recorded as royalty expense. Product royalty revenue and royalty expense related to the Company's retained interest in Rotarix was $10.8 million, $9.1 million and $6.4 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Pfizer Inc. (Pfizer)

In April 2008, the Company and Pfizer entered into a License and Development Agreement under which Pfizer was granted an exclusive worldwide license to rindopepimut. Under the Pfizer agreement, Pfizer made an upfront payment to the Company of $40 million and made a $10 million equity investment in the Company. The Pfizer agreement also provided for reimbursement by Pfizer of all costs incurred by the Company in connection with the collaboration since the effective date.

In November 2010, the Pfizer agreement was terminated and all rights to rindopepimut were returned to the Company. Pfizer did not provide a reason for termination. As a result of the termination, the Company recognized the remaining deferred revenue related to the Pfizer agreement to product development and licensing agreement revenue during the year ended December 31, 2010. The Company recorded $39.9 million in product development and licensing agreement revenue under the Pfizer agreement during the year ended December 31, 2010. The Company incurred and invoiced Pfizer reimbursable costs related to the Pfizer collaboration of $0.8 million for the year ended December 31, 2010. Since the termination of the Pfizer agreement, Pfizer is no longer funding the development of rindopepimut.

In connection with the Pfizer agreement, the Company paid a total of $6.9 million in sublicense fees to Duke University and Thomas Jefferson University. As a result of the Pfizer termination, the Company recognized the remaining deferred costs related to the Pfizer agreement to royalty expense during year ended December 31, 2010. The Company recorded $5.7 million in royalty expense related to these deferred sublicense fees during the year ended December 31, 2010.