Subsequent Events

3 Months Ended

Mar. 31, 2018

Subsequent Events

Subsequent Events

(2) Subsequent Events

On April 16, 2018, the Company announced the failure of its clinical trial (“METRIC”) in metastatic triple-negative breast cancer to meet its primary endpoint and decision to discontinue the glembatumumab vedotin (“Glemba”) program. The Company considered the METRIC failure and discontinuation of the Glemba program to be a recognized subsequent event that provided additional evidence related to estimates used in preparing the financial statements as of March 31, 2018. Accordingly, for the quarter ended March 31, 2018, the Company recognized (i) an aggregate of $18.7 million in non-cash impairment charges related to fully impairing Glemba-related intangible assets, (ii) a $0.8 million non-cash income tax benefit related to the impaired IPR&D assets, (iii) a $13.6 million gain on the contingent consideration liability related to the METRIC study failure and updated discount rates, and (iv) a $91.0 million goodwill impairment charge as the carrying value of the Company’s net assets exceeded the Company’s fair value by an amount in excess of the goodwill asset.

On April 24, 2018, the Company approved a reduction in its workforce to reduce operating costs and better align its workforce with the needs of its business. The Company will incur aggregate restructuring charges in the second quarter of 2018 of approximately $1.3 million related to cash severance payments and other employee-related costs, which will primarily be paid during the second and third quarters of 2018. In the second quarter of 2018, the Company undertook a pipeline prioritization initiative and any adjustments to the fair value of the Kolltan acquisition contingent consideration liabilities resulting from this initiative will be recognized in the second quarter of 2018.