Collaborative and Other Arrangements (Notes)

12 Months Ended

Dec. 31, 2019

Collaborative and Other Arrangements [Abstract]

Collaborative Arrangement Disclosure [Text Block]

COLLABORATIVE AND OTHER ARRANGEMENTS

On February 3, 2017, we entered into two MSA's, (i) whereby Pfizer will manufacture and supply us with certain agreed upon products for an initial five-year term with a one-time two-year option to extend and (ii) whereby we will manufacture and supply Pfizer certain agreed upon products for a term of five or ten years depending on the product, also with a one-time two-year option to extend. The MSA's provide each party with mutually beneficial interests and both of the MSA's are to be jointly managed by both Pfizer and ICU. The initial supply price, which will be annually updated, is in full consideration for all costs associated with the manufacture, documentation, packaging and certification of the products.  

On February 3, 2017, as part of the HIS business acquisition, we had entered into an agreement with Pfizer, whereby Pfizer were to provide certain transitional services to us for finance, business technology, regulatory, human resources, global operations, procurement, quality and global commercial operation services ("Enabling Function Services"). We paid a monthly service fee for each service provided, and shared equally with Pfizer in certain set-up costs and, as applicable, service exit costs. Our share of the set-up costs and service exit costs, in the aggregate, were not to exceed $22.0 million. The service fees were subject to a fee cap of (i) $62.5 million during the initial twelve month period and (ii) $31.3 million during the subsequent six month period. Only the Enabling Function Services were subject to the fee cap, any services provided after expiration of the agreement or services that were not Enabling Function Services were to result in service fees outside the fee cap. The service fees were intended to reasonably approximate Pfizer’s cost of providing the Enabling Function Services. We had also entered into a reverse transitional services agreement, where we provided to Pfizer certain transitional services ranging in term from three to eighteen months. Services included support for real estate, research and development, infrastructure, logistics, quality, site operations, safety, commercial and finance, and regulatory support services. This transitional service agreement with Pfizer ended in 2018.