Co-Promotion Arrangement With Eagle Pharmaceuticals

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Co-promotion Arrangement With Eagle Pharmaceuticals

CO-PROMOTION ARRANGEMENT WITH EAGLE PHARMACEUTICALS

On November 4, 2015, we executed an agreement with Eagle Pharmaceuticals, Inc. ("Eagle") whereby designated members of our sales force concurrently marketed up to six of Eagle's products along with our products in return for fixed monthly payments (aggregating $12.8 million), as well as variable sales-based milestones, over an 18 month contract term of January 1, 2016 through June 30, 2017 (the "Eagle Agreement"). On July 1, 2017 our sales force ceased marketing Eagle products, with the Eagle Agreement expiring under its terms.

The fixed receipts from Eagle for our sales activities, as well as reimbursements of third-party marketing services, are recognized within "license fees and service revenue" on our accompanying Consolidated Statements of Operations. This amount was $4.7 million, $9.1 million, and $0 for the years ended December 31, 2017, 2016, and 2015, respectively. No sales-based milestones were achieved in the current or prior periods.

An allocation of our sales personnel costs that are dedicated to Eagle sales activities are reported within "cost of service revenue" on our accompanying Consolidated Statement of Operations, as are reimbursable costs for third-party marketing services. These were an aggregate of $4.2 million, $7.9 million, and $0 for the years ended December 31, 2017, 2016, and 2015, respectively.